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When a new partner is given 30% interest in the partnership, he will receive 30% of all future profits and losses. True or False?

User Ejgottl
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Final answer:

True, a new partner given a 30% interest typically receives 30% of all future profits and losses, but this is dependent on the partnership agreement, and partners may also share liabilities.

Step-by-step explanation:

When a new partner is given a 30% interest in the partnership, it's typically true that they will receive 30% of all future profits and losses. However, partnerships can have varied agreements about the distribution of profits and losses, and it's essential to have a clear understanding in the partnership agreement.

Additionally, partners in a general partnership share the business's debts and liabilities, meaning they could be personally responsible for the actions of the other partners. This potential personal liability is in contrast with a limited liability partnership (LLP), where a partner's liability is limited to their investment in the company, protecting personal assets.

User Dmytro Sadovnychyi
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