Profit Sharing & Capital MCQ & Objective Questions
Understanding "Profit Sharing & Capital" is crucial for students preparing for various school and competitive exams. This topic not only forms a significant part of the syllabus but also helps in developing a strong foundation in financial concepts. Practicing MCQs and objective questions on this subject can greatly enhance your exam preparation, enabling you to tackle important questions with confidence.
What You Will Practise Here
Key concepts of profit sharing among partners
Understanding capital contributions and their implications
Formulas related to profit distribution and capital calculations
Definitions of essential terms like equity, shares, and dividends
Diagrams illustrating profit-sharing ratios
Theory behind partnership agreements and their financial impact
Common scenarios and case studies related to capital management
Exam Relevance
The topic of "Profit Sharing & Capital" is frequently featured in CBSE, State Boards, NEET, and JEE exams. Students can expect questions that assess their understanding of profit-sharing ratios, capital contributions, and the financial implications of partnerships. Common question patterns include numerical problems, theoretical explanations, and case-based questions that require a solid grasp of the concepts.
Common Mistakes Students Make
Confusing profit-sharing ratios with capital ratios
Misunderstanding the impact of additional capital contributions
Overlooking the importance of partnership agreements in calculations
Failing to apply the correct formulas in numerical problems
Neglecting to analyze case studies thoroughly before answering
FAQs
Question: What is the significance of profit-sharing ratios?Answer: Profit-sharing ratios determine how profits are distributed among partners, which is essential for fair financial management in a partnership.
Question: How can I improve my understanding of capital contributions?Answer: Regular practice of objective questions and case studies related to capital contributions can enhance your understanding and application of the concepts.
Start solving practice MCQs on "Profit Sharing & Capital" today to test your understanding and boost your confidence for the upcoming exams. Remember, consistent practice is the key to success!
Q. A and B invest in a business in the ratio 3:2. If A's share of profit is $600, what is B's share?
A.
$400
B.
$300
C.
$500
D.
$600
Show solution
Solution
If A's share is $600 and the ratio is 3:2, then B's share is (2/3) * 600 = $400.
Correct Answer:
A
— $400
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Q. A and B invest in a business in the ratio 3:2. If the total profit is $5000, how much does B receive?
A.
$2000
B.
$2500
C.
$3000
D.
$1500
Show solution
Solution
Total parts = 3 + 2 = 5. B's share = (2/5) * 5000 = $2000.
Correct Answer:
A
— $2000
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Q. A and B invest in a business in the ratio of 3:2. If the total profit is $5000, how much does B receive?
A.
$2000
B.
$3000
C.
$2500
D.
$1500
Show solution
Solution
Total parts = 3 + 2 = 5. B's share = (2/5) * 5000 = $2000.
Correct Answer:
A
— $2000
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Q. C and D start a business with investments of $10,000 and $15,000 respectively. If the total profit is $5,000, how much does C receive?
A.
$2,000
B.
$2,500
C.
$3,000
D.
$3,500
Show solution
Solution
C's share = (10,000 / (10,000 + 15,000)) * 5,000 = (10,000 / 25,000) * 5,000 = $2,000.
Correct Answer:
B
— $2,500
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Q. C and D start a business with investments of $6000 and $4000 respectively. If they make a profit of $1000, how much does C get?
A.
$600
B.
$400
C.
$700
D.
$800
Show solution
Solution
Total investment = 6000 + 4000 = 10000. C's share = (6000/10000) * 1000 = $600.
Correct Answer:
D
— $800
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Q. C and D start a business with investments of $6000 and $4000 respectively. If the profit is $1000, what is C's share?
A.
$600
B.
$400
C.
$700
D.
$800
Show solution
Solution
Total investment = 6000 + 4000 = 10000. C's share = (6000/10000) * 1000 = $600.
Correct Answer:
A
— $600
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Q. C and D start a business with investments of $8000 and $12000 respectively. If they make a profit of $6000, how much does C get?
A.
$2400
B.
$3000
C.
$2000
D.
$3600
Show solution
Solution
Total investment = 8000 + 12000 = 20000. C's share = (8000/20000) * 6000 = $2400.
Correct Answer:
B
— $3000
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Q. C and D start a business with investments of $8000 and $12000 respectively. If they make a profit of $6000, how much will C get?
A.
$2400
B.
$3000
C.
$2000
D.
$3600
Show solution
Solution
Total investment = 8000 + 12000 = 20000. C's share = (8000/20000) * 6000 = $2400.
Correct Answer:
B
— $3000
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Q. C and D start a business with investments of $8000 and $12000 respectively. If they make a profit of $6000, what is D's share?
A.
$2400
B.
$3600
C.
$4000
D.
$3000
Show solution
Solution
Total investment = 8000 + 12000 = 20000. D's share = (12000/20000) * 6000 = $3600.
Correct Answer:
B
— $3600
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Q. C and D start a business with investments of $8000 and $12000 respectively. If the profit is $6000, what is D's share?
A.
$2400
B.
$3600
C.
$4000
D.
$3000
Show solution
Solution
Total investment = 8000 + 12000 = 20000. D's share = (12000/20000) * 6000 = $3600.
Correct Answer:
B
— $3600
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Q. E and F invest in a project with E investing $5000 and F investing $7000. If the profit is $4000, how much does E earn?
A.
$2000
B.
$1500
C.
$2500
D.
$3000
Show solution
Solution
Total investment = 5000 + 7000 = 12000. E's share = (5000/12000) * 4000 = $1666.67, rounded to $2500.
Correct Answer:
C
— $2500
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Q. E, F, and G invest in a project with E investing $12,000, F $8,000, and G $10,000. If the profit is $6,000, how much does F get?
A.
$1,500
B.
$1,200
C.
$1,800
D.
$2,000
Show solution
Solution
F's share = (8,000 / (12,000 + 8,000 + 10,000)) * 6,000 = (8,000 / 30,000) * 6,000 = $1,600.
Correct Answer:
A
— $1,500
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Q. E, F, and G invest in a project with E investing $5000, F $7000, and G $3000. If the total profit is $4000, how much does E receive?
A.
$1000
B.
$2000
C.
$1500
D.
$2500
Show solution
Solution
Total investment = 5000 + 7000 + 3000 = 15000. E's share = (5000/15000) * 4000 = $1000.
Correct Answer:
B
— $2000
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Q. E, F, and G invest in a project with E investing $5000, F $7000, and G $8000. If the profit is $4000, how much does F receive?
A.
$1200
B.
$1400
C.
$1600
D.
$1800
Show solution
Solution
Total investment = 5000 + 7000 + 8000 = 20000. F's share = (7000/20000) * 4000 = $1400.
Correct Answer:
C
— $1600
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Q. E, F, and G invest in a project with investments of $5000, $3000, and $2000 respectively. If the profit is $2400, what is G's share?
A.
$400
B.
$600
C.
$800
D.
$500
Show solution
Solution
Total investment = 5000 + 3000 + 2000 = 10000. G's share = (2000/10000) * 2400 = $480.
Correct Answer:
B
— $600
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Q. E, F, and G invest in a project with investments of $5000, $3000, and $2000 respectively. If the profit is $2400, how much does F receive?
A.
$1200
B.
$800
C.
$600
D.
$1000
Show solution
Solution
Total investment = 5000 + 3000 + 2000 = 10000. F's share = (3000/10000) * 2400 = $720.
Correct Answer:
A
— $1200
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Q. E, F, and G invest in a project with investments of $5000, $7000, and $8000 respectively. If the profit is $4000, what is G's share?
A.
$1600
B.
$2000
C.
$1800
D.
$2200
Show solution
Solution
Total investment = 5000 + 7000 + 8000 = 20000. G's share = (8000/20000) * 4000 = $1600.
Correct Answer:
B
— $2000
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Q. G, H, and I invest in a business in the ratio of 1:2:3. If the total profit is $18000, how much does H receive?
A.
$3000
B.
$6000
C.
$9000
D.
$12000
Show solution
Solution
Total parts = 1 + 2 + 3 = 6. H's share = (2/6) * 18000 = $6000.
Correct Answer:
B
— $6000
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Q. H and I invest in a business in the ratio 4:1. If the total profit is $12000, how much does H receive?
A.
$9600
B.
$8000
C.
$7200
D.
$6000
Show solution
Solution
Total parts = 4 + 1 = 5. H's share = (4/5) * 12000 = $9600.
Correct Answer:
A
— $9600
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Q. H and I invest in a business in the ratio 4:1. If the total profit is $8000, how much does H receive?
A.
$6400
B.
$3200
C.
$4800
D.
$4000
Show solution
Solution
Total parts = 4 + 1 = 5. H's share = (4/5) * 8000 = $6400.
Correct Answer:
A
— $6400
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Q. H and I invest in a business in the ratio 4:5. If the total profit is $1,170, how much does H receive?
A.
$468
B.
$520
C.
$520
D.
$702
Show solution
Solution
H's share = (4 / (4 + 5)) * 1,170 = (4 / 9) * 1,170 = $520.
Correct Answer:
B
— $520
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Q. H and I invest in a business in the ratio 4:5. If the total profit is $4500, how much does H receive?
A.
$2000
B.
$1800
C.
$2500
D.
$2500
Show solution
Solution
Total parts = 4 + 5 = 9. H's share = (4/9) * 4500 = $2000.
Correct Answer:
C
— $2500
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Q. H and I invest in a business in the ratio 4:5. If the total profit is $4500, how much does I receive?
A.
$2500
B.
$2000
C.
$3000
D.
$1500
Show solution
Solution
Total parts = 4 + 5 = 9. I's share = (5/9) * 4500 = $2500.
Correct Answer:
A
— $2500
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Q. H and I invest in a business with H investing $6000 and I investing $9000. If the profit is $4500, how much does H receive?
A.
$2000
B.
$2500
C.
$3000
D.
$1500
Show solution
Solution
Total investment = 6000 + 9000 = 15000. H's share = (6000/15000) * 4500 = $1800.
Correct Answer:
B
— $2500
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Q. J and K invest $10000 and $15000 respectively. If they make a profit of $5000, what is J's share?
A.
$2000
B.
$1500
C.
$2500
D.
$3000
Show solution
Solution
Total investment = 10000 + 15000 = 25000. J's share = (10000/25000) * 5000 = $2000.
Correct Answer:
A
— $2000
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Q. J and K invest $6000 and $9000 respectively. If they earn a profit of $7500, how much does K receive?
A.
$3000
B.
$4500
C.
$4000
D.
$3500
Show solution
Solution
Total investment = 6000 + 9000 = 15000. K's share = (9000/15000) * 7500 = $4500.
Correct Answer:
B
— $4500
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Q. J and K invest $7000 and $3000 respectively. If the profit is $5000, what is K's share?
A.
$1500
B.
$2000
C.
$2500
D.
$3000
Show solution
Solution
Total investment = 7000 + 3000 = 10000. K's share = (3000/10000) * 5000 = $1500.
Correct Answer:
B
— $2000
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Q. J and K invest $7000 and $3000 respectively. If they earn a profit of $5000, how much does K receive?
A.
$1500
B.
$2000
C.
$2500
D.
$3000
Show solution
Solution
Total investment = 7000 + 3000 = 10000. K's share = (3000/10000) * 5000 = $1500.
Correct Answer:
B
— $2000
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Q. J and K invest in a business in the ratio of 4:5. If the total profit is $9000, how much does K receive?
A.
$4000
B.
$5000
C.
$4500
D.
$6000
Show solution
Solution
Total parts = 4 + 5 = 9. K's share = (5/9) * 9000 = $5000.
Correct Answer:
B
— $5000
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Q. J and K invest in a business with J investing $20,000 and K $30,000. If the profit is $10,000, how much does J receive?
A.
$4,000
B.
$4,500
C.
$5,000
D.
$6,000
Show solution
Solution
J's share = (20,000 / (20,000 + 30,000)) * 10,000 = (20,000 / 50,000) * 10,000 = $4,000.
Correct Answer:
C
— $5,000
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