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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 509 |
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Normally the profit and loss agreement recognizes variations in effort by calling for a portion of net income to be allocated to partners as salary. Such salaries, like interest on capital investment, are viewed as a means of allocating income rather than as an expense. It is important to not that this treatment of partners' salaries differs from the treatment of employee/shareholder salaries in a corporation, and the difference should be considered when the performance of a partnership is compared with that of a competing corporation...
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It is important to not that this treatment of partners' salaries differs from the treatment of employee/shareholder salaries in a corporation, and the difference should be considered when the performance of a partnership is compared with that of a competing corporation.
Multiple Bases of Allocation...
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