Question

Skip and Trace decide to start a business. They sign a partnership agreement providing that Skip will contribute $6,000 toward the necessary $10,000 in start-up capital and Trace will contribute $4,000. If the agreement is silent as to management and profits, Skip should receive:

Answer 1

Answer: 50% of the profit and share equal management.

Explanation:

Since the agreement is silent as to management and profits, Skip should receive 50% of the profit and share equal management.

It should be noted that when profit sharing and the management related isn't defined, profits and management will be divided equally among the partners. Therefore, in this case, profit will be shared equally.