Explanation

Partners may renegotiate profit sharing when circumstances change. A partner with special skills might deserve more. Health problems or old age might reduce someone’s contribution, leading to a smaller share.

Intangible asset increases affect the business’s total value but don’t directly cause partners to change how they split profits. The sharing ratio is about individual partner contributions, not business asset growth.

Remember: Profit sharing changes when partner circumstances change, not when business assets change.