It is really common sense if you look at the standards. In case the total capital increased because other investors contributed an addiitonal capital, then your share will decrease. For example another Php50,000 was added to the initial capital, then it will become php150,000 which you have to divide 25,000 to 150,000. Your percentage of profit share will be 16.7%.
If one of the investors was delegated or volunteered to manage the business, he or she will also get a monthly salary which will be approved by the majority of the investors. I think there is another option like having a higher percentage of profit instead of having a salary but I’m not sure it is standard. I just heard it from my father which he have agreed with his business partners during my childhood years.
But what if you didn’t have a capital? can you be a business partner also? Again, their is a term called “Industrial Partner” where you get percentage of the total capital provided that you will put your time and effort to manage the business.
Posted by Manuel
Manuel Montala was an online entrepreneur who enjoys blogging about entrepreneurship and gathering information for his blog to help budding entrepreneurs. You can also reach him on twitter: http://twitter.com/mmontala
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very nice.its really a commons sense. nice man!
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