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Lane and Hill have decided to form a partnership. Lane is to contribute 150,000 as capital and Hill 20,000. Hill is to work full time
Lane and Hill have decided to form a partnership. Lane is to contribute 150,000 as capital and Hill 20,000. Hill is to work full time in the business and Lane one day a week. Because Hill has no other income, she anticipates making drawings of 1,000 per month from the partnership. Lane expects to make drawings of about 1,000 per quarter. You have been asked to advise the partners on how to share profits in such a way as to compensate each of them for their unequal contributions of capital and labour and withdrawals.
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