Test yourself — an SQE1 partnership question (BLP / FLK1)
Two individuals run a graphic-design business as a partnership. There is no written partnership agreement. One partner contributed £80,000 of the start-up capital and the other contributed £20,000. Over the first year one partner worked full time on the business while the other worked only occasionally, and the full-time partner now argues she should receive a salary for her extra work and a larger share of the £50,000 profit to reflect her capital and effort. The other partner disagrees. The partners cannot resolve the dispute and ask how the default rules of partnership law apply.
Which best describes the position under the default rules?
A) Profits are shared in proportion to capital contributed, and the full-time partner is entitled
to a salary.
B) Profits are shared equally, but the full-time partner is entitled to a salary for her
additional work.
C) Profits are shared equally, and neither partner is entitled to a salary.
D) Profits are shared in proportion to the work each partner actually did.
E) Profits are shared in proportion to capital contributed, but neither partner is entitled to a
salary.
Drop your answer below. Worked solution + a tutor to explain it is on the question page:
Posted Jun 23, 2026, 10:24 AM UTC