Transactions between partners and partnerships with regard t

Transactions between partners and partnerships, with regard to services. What reason can you think of to provide guaranteed payments to a partner?

Solution

Gurarnateed payments are made by partnership to partners to compensate him for services provided by him.

These payments are made to eliminate the risk faced bya partner who is making personal contributions of time or property for which they will never get compensated, if the partnership is unsuccessful. These payments are made to partners without regard to profitability.