IGCSE, A Level Business Student Forum

[kn] profit and loss sharing
[an] It describes how profits and losses will be distributed among partners

[kn] the decision making process
[an] in order to have no conflicts, a apartnership agreement specifies the aims for businesses growth in mind

[KN]: Profit and loss sharing
[AN]: Partners have to calculate the total profits and loss that each is responsible to get or to pay
[AN]: It allows smooth working of the business

[KN]: Decision making process
[AN]: Partners have to make major decisions of the business together
[AN]: Approval of all partners is required to prevent any arguments

[KN]Financial Distribution and Profit Sharing
[AN] may impact the other partners investment

[KN]Management and Operations
[AN]Clarity of the process can create a sense of direction and maintain smooth operations.