Question

Partners are entitled to get salary or commission. (State True or False)

Answer 1

It depends upon the type of bond or agreement between the partners. In high cases its commission (profit).

Answer 2

Partners are entitled to get salary or commission - True.

• A company is run in share by partners. So the profit is shared between the partners either in form of salary or commission.

• In a company a partner is entitled to recieve remuneration or commission only when he or she has devoted time and given labour for the company.

• Apart from the share, a partner is entitled to receive the annual profit as per their agreement as a reward or emolument for devoting their hard work.