February 12, 2012

How does investing in a small partnership business work?

Question by Will H: How does investing in a small partnership business work?
lets say i wanted to invest in some friends small business of selling t shirts and hats, they have a few people investing with them. the first quarter goes by and they see some profits how are these divided up?

Best answer:

Answer by capwest5a
It usually depends on how much you invest. For example, say two of your friend put in 0 each and now you come along and put in, say, 0. In that case, you should get (0 / ,200) of the profits, or about 17%.

If you also put in 0, then you are all equal parents and you should get 33% of the profits.

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