Tom has agreed to become a partner in a business.Since he will provide 30% of the capital to start the company,he is entitled to 30% of any profits the company earns during its first year of operation.

Question

Quizplus · Accepted Answer

The percentage of profits a partner is entitled to is not solely determined by the percentage of capital they contribute. It depends on the partnership agreement made between the partners.

Tom Has Agreed to Become a Partner in a Business