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If Partner A contributes 60% of the capital and Partner B contributes 40%, how s
If Partner A contributes 60% of the capital and Partner B contributes 40%, how should profits be divided if they agree to split them equally?
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Q1
If Partner A contributes 60% of the capital and Partner B contributes 40%, how should profits be divided if they agree to split them equally?
60% to Partner A and 40% to Partner B
50% to each partner
70% to Partner A and 30% to Partner B
40% to Partner A and 60% to Partner B
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Despite the capital contribution, the partners agreed to split profits equally, hence 50% to each.
Questions & Step-by-step Solutions
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Q
Q: If Partner A contributes 60% of the capital and Partner B contributes 40%, how should profits be divided if they agree to split them equally?
Solution:
Despite the capital contribution, the partners agreed to split profits equally, hence 50% to each.
Steps: 4
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Step 1: Identify the contributions of each partner. Partner A contributes 60% and Partner B contributes 40%.
Step 2: Note that the partners have agreed to split the profits equally.
Step 3: Since they agreed to split profits equally, each partner will receive 50% of the profits.
Step 4: Conclude that despite the different capital contributions, the profit division is based on their agreement.
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