Finance Do All Partners In A Business Always Get An Equal Share Of Profits?

Good-Guy

VIP Contributor
When it comes to funding or financing a business, the general rule is that all the partners get an equal share of profits and the profits are divided by the ratio of investments each partner makes. This is mostly the case with big corporations or companies that provide dividends to shareholders on the basis or ratio of their investements in the company. The same can be said about other kind of business corporations that are based on partnerships. However, when it comes to finance or funding a business, I do not think that a person might always get an equal share because the working partner has the right to demand the salary apart from his investments from the sleeping partner. Do you agree that a partner has the right to ask for more profits?
 

Mataracy

VIP Contributor
Though in every company we use to have Active partner and Ordinary (passive) partners. I belive its not possible for the passive or ordinary partner to ask for the same profit . which means that the more you contribute the more profit you will receive vise versa. So An active partner do affect the business positively and can ask more more profit if need be.
 
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funmi

Verified member
It is possible for partners not to share the same profits due to the input they have made in the business. Some business partners do not really contribute much money into the business while some contributed a lot. I believe the profits should be shared according to their inputs in to the business. The higher the investment, the higher the profits will be. So that no one will take more than what he or she ought to take.
 
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Alexandoy

VIP Contributor
A partnership is a business owned by 2 or more partners. When I was in college the number of partners is 8 for the maximum. The partners can have a different amount of share of the business depending on their agreement. The ownership is stipulated in the registration of their partnership business so everything would be clear.
 
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Mika

VIP Contributor
Partnership business means you share profits and losses, How much profits and loss you share depends on the clauses of your partnership and the percentage of your share in the company. If your partnership is 50-50, you share equal profits and loss, if it is 40-60, where 60 percent is your stake, you share 60 percent profit or loss.
 
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Good-Guy

Good-Guy

VIP Contributor
I believe that one particular partner may get profits with an equal share ratio and also get salary from other partners if that one partner is a working partner. This is because apart from investing funds, this one particular partner is also working to maintain and sustain the business. I believe there is nothing wrong for a partner to receive salary for his or her efforts.
 
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Good luck

Valued Contributor
It depends on the initial agreement on such business,if there is a mutual discussion that the profits will be shared equally then there is nothing stopping them from getting equal amount of money when the profits arrive but if one of them finance the business by contributing a large quota for the business,such person will decide how the profits will be shared.
 
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