Alphonzo has agreed to become a partner in his brother's new clothing store and has provided 30 percent of the start-up capital for Remora's Clothiers.Since he provided 30 percent of the money to start the firm,he is entitled to 30 percent of any profits the firm earns during its first year of operations.

Question

Quizplus · Accepted Answer

Providing 30 percent of the start-up capital does not automatically entitle Alphonzo to 30 percent of the profits unless there is a specific agreement or contract stating this profit-sharing arrangement.

Alphonzo Has Agreed to Become a Partner in His Brother's