Partners active in a partnership business should have their share of partnership profits based on the following

Question

Quizplus · Accepted Answer

This option allows for a combination of both salaries for active partners and a percentage of the net income after salaries and any other allocation basis. This is a fair way of distributing profits as it takes into account the contributions of all partners to the business. It also incentivizes partners to work hard to generate more net income for the partnership.

Partners Active in a Partnership Business Should Have Their Share