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If the deed gives equal voting rights but unequal profit ratio, decisions will be based on what?

Answer and explanation

Correct answer: Equal voting rights

Direct answer: Option A, equal voting rights. Profit sharing and decision-making are separate matters. A deed may allow partners to share profits unequally while expressly giving each partner one equal vote. Step by step: first identify the issue as a decision-making issue, not a profit-distribution issue; next read the deed’s voting clause; the deed says voting rights are equal; therefore each partner’s vote carries the same weight; the decision is made under that equal-vote rule, subject to any special legal or deed requirement for particular matters. Option A is correct because the stated voting provision directly governs decisions. Option B, profit ratio, determines how profit or loss is shared, but it does not automatically determine voting power when the deed says otherwise. Option C, capital ratio, might be relevant only if the agreement makes voting depend on capital, but the stated equal-vote clause rejects that basis. Option D, drawings ratio, records withdrawals and has no normal role in voting. The safe exam method is to match the question with the relevant clause instead of assuming that every partnership matter follows the profit ratio. This answer assumes the deed’s equal-voting clause is valid and no separate mandatory rule is given. Memory cue: profit ratio distributes profit; voting clause decides votes.

Related tags

Voting RightsProfit RatioDeed

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