In the absence of an agreement, partners share profits
Question 1 Report
In the absence of an agreement, partners share profits
Answer Details
In the absence of an agreement, partners share profits on an equal basis. This means that each partner is entitled to an equal share of the profits, regardless of their level of activity or capital contribution. This is known as the principle of equal sharing, which is the default rule in the absence of a partnership agreement specifying otherwise. It is important for partners to have a written agreement that specifies how profits will be divided, as well as other important terms such as the duties and responsibilities of each partner, how disputes will be resolved, and how the partnership can be dissolved.
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