Final answer:
Profit sharing in a general partnership without an explicit agreement is typically just and equitable, meaning profits are divided equally among all partners. Court intervention is not necessary unless there's a dispute that partners cannot resolve themselves. Partners share both profits and liabilities.
Step-by-step explanation:
The student's question pertains to the distribution of profits within a partnership when there's no explicit agreement on profit sharing. In the absence of an agreement stipulating the allocation of profits, the default approach is to divide profits equally among all partners. This method reflects the principle of just and equitable distribution, assuming all partners have equally contributed to the partnership, and it aligns with the basic rules of a general partnership structure. The court intervention would typically not be necessary unless there's a dispute among the partners that cannot be resolved internally.
Considering the disadvantages of general partnership, it should be noted that each partner is not only entitled to an equal share of the profits but also equally responsible for the liabilities and debts of the business. This collective responsibility is a significant aspect, as it can impact personal assets in the case of legal or financial issues that the partnership may encounter.