Equity bonus
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
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
