Zeno, Zella, and Zorro wish to form a partnership. Zeno is putting up 60 percent of the capital, Zella is putting up 40 percent, and Zorro is putting in no capital but will manage the business. In the absence of a provision in the partnership agreement, how will the liability and profits be distributed?

Question

Quizplus · Accepted Answer

In the absence of a specific provision in the partnership agreement, liability and profits in a partnership are typically distributed equally among the partners, regardless of the amount of capital or work each partner contributes.

Zeno, Zella, and Zorro Wish to Form a Partnership