Responsiblity of an equal share of Profits or Losses

Question

Explain how it is responsible for an equal share of Profits/Losses?

Answer 1

It is responsible for an equal share of Profits/Losses:

Reimbursement: Each partner is entitled to be reimbursed for payments made in the ordinary course of partnership business.

Partnership Property: Property brought into the partnership or purchased with partnership monies (except if designated to remain personal) must be held and used exclusively for the partnership.

Capital Contributions and Loans: A partner is NOT entitled to interest on capital contributed to the partnership but is entitled to 5% interest on loans made to the partnership.

Salaries: A partner is not entitled to be paid a salary for engaging in partnership business.

Management : Each partner has the right to participate in management.

Access: Each partner has equal access to books/records.

Ordinary Decisions: Decisions about ordinary business matters are decided by majority rule.

Other Decisions: Unanimous consent is required to admit a new partner, terminate a partner, change the nature of the business, or change the default partnership rules.

Fiduciary Duties:  There is a duty to render true accounts and full information to the other partners, to disclose any secret benefits, and not to compete without the consent of the other parties. These implied terms cannot be opted out by agreement.