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Investments glossary

Guaranteed Payments to Partners

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Quotes of the day:

A lot of other countries have central government systems that buy drugs for other people. That can reduce the fluctuations.

— Aaron Kesselheim

Guaranteed payments to partners are payments meant to compensate a partner for services rendered or use of capital. Essentially, they are the equivalent of a salary for partners or limited liability company (LLC) members. These kinds of payments eliminate the risk of a partner making personal contributions of time or property and then never getting compensated if the partnership does not prove to be successful.



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