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How much profit each of the partners will receive

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Question: Sultan and Nelson set up a partnership to run a digital marketing business. At the time of establishing the business, Sultan was in a better financial position than Nelson and so contributed 60% of the capital required. Nelson believes that he contributes as much effort to running the digital marketing business as Sultan and therefore assumes that any profit made will be distributed evenly between Sultan and him. There is no formal partnership agreement between the two. Is Nelson correct, and what factors might determine how much profit each of the partners will receive?

Reference no: EM132735645

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