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I can't seem to find an answer (or a proper way of asking Google) this: If there's a company with two partners, one who has invested capital, and the other who has invested sweat equity, and takes out a guaranteed payment basically in the sum of capital (and the business in question provides...
Why is it important to keep paid in capital separate from earned capital?
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In all of the reading I've done, it has described what paid in capital is and what earned capital is. However, I can't seem to find anything specific about why it is important to keep them separate. My guess it that Paid in Capital is money that is used in the operations of the business and are to...
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