Assume that the Barnes and Ardmore partnership agreement provides for a two third one third sharing of income but says nothing about losses The first year of partnership operation resulted in a loss, and Barnes argues that the loss should be shared equally because the partnership agreement said not...

Assume that the Barnes and Ardmore partnership agreement provides for a two-third/one-third sharing of income but says

Question:

Assume that the Barnes and Ardmore agreement provides for a two-third/one-third sharing of income but says nothing about losses. The first year of operation resulted in a loss, and Barnes argues that the loss should be shared equally because the agreement said nothing about sharing losses. Is Barnes correct? Explain.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...