Adrianna and Trevor have formed a partnership without a partnership agreement. Trevor contributes twenty percent of the partnership capital and does sixty percent of the work. If the partnership earns a profit of $10,000 after its first year, how much of the profit can Adrianna legally claim?

Question

Quizplus · Accepted Answer

Without a partnership agreement, the default rule is that profits are shared equally among the partners unless there has been an unequal agreement. In this scenario, Trevor contributes 20% of capital and does 60% of the work, so it is likely that they made an unequal agreement. However, the question does not provide any information about their agreement. Therefore, we have to assume that they did not make an agreement and profits would be split equally.

Therefore, both partners would be entitled to $5,000 in profits.

Adrianna and Trevor Have Formed a Partnership Without a Partnership