Open App

Commerce Exam > Commerce Videos > Accountancy Class 12 > Guarantee of Profit to a Partner

Guarantee of Profit to a Partner Video Lecture | Accountancy Class 12 - Commerce

FAQs on Guarantee of Profit to a Partner Video Lecture - Accountancy Class 12 - Commerce

1. What is a guarantee of profit in a partnership?

Ans. A guarantee of profit in a partnership refers to an agreement where one partner ensures that another partner will receive a certain minimum amount of profit, regardless of the actual earnings of the business. This arrangement can provide financial security for the partner receiving the guarantee.

2. How is a guarantee of profit typically structured in a partnership agreement?

Ans. A guarantee of profit is usually detailed in the partnership agreement, specifying the amount guaranteed, the duration of the guarantee, and the conditions under which it applies. It may also outline how profits are calculated and any potential adjustments based on business performance.

3. What are the potential risks of providing a guarantee of profit to a partner?

Ans. Providing a guarantee of profit can pose several risks, including financial strain on the guaranteeing partner if the business does not perform well. It may also lead to unequal profit-sharing dynamics, potential conflicts among partners, and a decrease in motivation for the guaranteed partner to contribute to the business's success.

4. Can a guarantee of profit be revoked or modified?

Ans. Yes, a guarantee of profit can typically be revoked or modified, but this process must be agreed upon by all partners involved. It should be documented formally in writing to ensure clarity and avoid potential disputes in the future.

5. What legal implications should partners consider with a profit guarantee?

Ans. Partners should consider several legal implications, such as the enforceability of the guarantee under local laws, tax implications, and the potential for disputes arising from unmet profit expectations. Consulting with a legal professional is advisable to ensure that the partnership agreement complies with relevant regulations and protects all parties involved.

About this Video

4K Views

4.84/5 Rating

Sep 01, 2025 Last updated

Related Exams

Commerce Grade 9 Grade 12 A Level Year 13

Video Description: Guarantee of Profit to a Partner for Commerce 2025 is part of Accountancy Class 12 preparation. The notes and questions for Guarantee of Profit to a Partner have been prepared according to the Commerce exam syllabus. Information about Guarantee of Profit to a Partner covers all important topics for Commerce 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Guarantee of Profit to a Partner.

Introduction of Guarantee of Profit to a Partner in English is available as part of our Accountancy Class 12 for Commerce & Guarantee of Profit to a Partner in Hindi for Accountancy Class 12 course. Download more important topics related with notes, lectures and mock test series for Commerce Exam by signing up for free.

Description

Video Lecture & Questions for Guarantee of Profit to a Partner Video Lecture | Accountancy Class 12 - Commerce - Commerce full syllabus preparation | Free video for Commerce exam to prepare for Accountancy Class 12.

Information about Guarantee of Profit to a Partner

Here you can find the meaning of Guarantee of Profit to a Partner defined & explained in the simplest way possible. Besides explaining types of Guarantee of Profit to a Partner theory, EduRev gives you an ample number of questions to practice Guarantee of Profit to a Partner tests, examples and also practice Commerce tests.

	Accountancy Class 12 42 videos\|255 docs\|51 tests

Accountancy Class 12

42 videos|255 docs|51 tests

Join Course for Free

Explore Courses for Commerce exam

Important questions

video lectures

practice quizzes

pdf

mock tests for examination

MCQs

past year papers

Extra Questions

study material

Viva Questions

Guarantee of Profit to a Partner Video Lecture | Accountancy Class 12 - Commerce

Objective type Questions

Exam

Previous Year Questions with Solutions

Free

Semester Notes

Sample Paper

Guarantee of Profit to a Partner Video Lecture | Accountancy Class 12 - Commerce

shortcuts and tricks

ppt

Summary

;

Study Guarantee of Profit to a Partner on the App

Students of Commerce can study Guarantee of Profit to a Partner alongwith tests & analysis from the EduRev app, which will help them while preparing for their exam. Apart from the Guarantee of Profit to a Partner, students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc. The EduRev App will make your learning easier as you can access it from anywhere you want. The content of Guarantee of Profit to a Partner is prepared as per the latest Commerce syllabus.

Education Revolution