Question: If Partner A contributes 60% of the capital and Partner B contributes 40%, how should profits be divided if they agree to split them based on capital contribution?

Options:

1. 60% to A and 40% to B
2. 50% to A and 50% to B
3. 70% to A and 30% to B
4. 40% to A and 60% to B

Correct Answer: 60% to A and 40% to B

Solution:

Profits should be divided in accordance with their capital contributions, so A receives 60% and B receives 40%.