Hannah and Jeremy set up a partnership to run a caf. At the time of establishing the

Question:

Hannah and Jeremy set up a partnership to run a café. At the time of establishing the business, Hannah was in a better financial position than Jeremy and so contributed 60% of the capital required. Jeremy believes that he contributes as much effort to running the café as Hannah and therefore assumes that any profit made will be distributed evenly between Hannah and him. Is Jeremy correct, and what factors might determine how much profit each of the partners will receive?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

Question Posted: