Equity bonus

From CNM Wiki
Jump to: navigation, search

In a legal partnership, an equity bonus (sometimes, simply, bonus) is a payment by a new partner or, vice versa, to a new partner.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bonus. When a new partner is admitted, he or she may pay more or less than equity interest. If the new partner pays more, the old partners share a bonus in the profit and loss ratio. Of course, the opposite could result, and the new partner could receive a bonus if he or she invests less than equity interest.

Related concepts

Related lectures