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The deed states that a person will not share profits but will receive only fixed salary. What type of position can this indicate?

Answer and explanation

Correct answer: He may be more like an employee than a real partner

Sharing profit is an important element of partnership. A person receiving only salary may not be a real partner.

Related tags

Profit SharingPartner StatusDeed AnalysisPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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