Anonymous
Anonymous asked in Business & FinanceSmall Business · 1 month ago

If two sisters inherit a business and one of them acts as CEO, why should they both share the profits?  One of them doesn’t work there?

13 Answers

Relevance
  • Anonymous
    1 month ago

    Well as much as so many people like to forget this.....becuase it’s what the person who died wanted and it shouldn’t be questioned. Obviously the CEO takes a salary but I’m the profits should be split as intended. Family before money. 

  • garry
    Lv 6
    1 month ago

    because one doesnt own the business , 2 own it , the one working can buy her sister out , simple as that .after all no one is forcing her to work or get the ceo's pay .ask yourself , would have he had the ceo job in another company , chances are no .

  • 1 month ago

    It would depend what the contract or agreement stated.

  • Judy
    Lv 7
    1 month ago

    Because both are part owners.  But CeO should get more

  • How do you think about the answers? You can sign in to vote the answer.
  • 1 month ago

    Each part owner IS entitled to half of the profits.  The CEO should be paid for the work he does as a CEO.

  • Anonymous
    1 month ago

    As far as I am concerned both of them don't work there. Acting as a CEO is NOT ENOUGH to be able to operate a business.

    I could act as CEO of any company, but that doesn't mean I would be doing anything there. Hahaha

    It must be fun collecting profits, and NOT doing anything except, for collecting money.

  • 1 month ago

    They should split the profits are co-owners, but the CEO should demand a salary.  The CEO could demand a higher portion of the profits (if there is no money for a salary) but if the other owner refuses to give it then her options might be to either quit or keep working for free.

  • 1 month ago

    The one who acts as CEO should get paid a reasonable salary, similar to what other CEO's of businesses of that size make.  This salary should not be included in the profit.  The remaining profit, after subtracting the salaries of the CEO and any other employees, should be shared by both because they both inherited it.

  • 1 month ago

    The CEO could have a salary with the net profits after that distributed evenly. 

  • 1 month ago

    What does "acts" as CEO mean?  They are the CEO or they aren't the CEO.

    If one of them is the CEO, then that person would get salary.

    And profits would be shared.

Still have questions? Get your answers by asking now.