If a new person wishes to be admitted to a partnership with two existing partners,and the existing partners accept,then the new person is automatically entitled to share in one-third the profits of the partnership.

Question

Quizplus · Accepted Answer

The distribution of profits in a partnership and the percentage of the new partner's share must be agreed upon and documented in the partnership agreement. It is not automatically one-third.

If a New Person Wishes to Be Admitted to a Partnership