If Partner A contributes 60% of the capital and Partner B contributes 40%, how s

Practice Questions

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?

60% to A and 40% to B
50% to A and 50% to B
70% to A and 30% to B
40% to A and 60% to B

Questions & Step-by-Step Solutions

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?

Step 1: Identify the total capital contributions of both partners. Partner A contributes 60% and Partner B contributes 40%.
Step 2: Understand that profits will be divided based on the percentage of capital each partner contributed.
Step 3: Since Partner A contributed 60%, they will receive 60% of the profits.
Step 4: Since Partner B contributed 40%, they will receive 40% of the profits.
Step 5: Conclude that the profits should be divided as follows: Partner A gets 60% and Partner B gets 40%.

Profit Sharing Based on Capital Contribution – Understanding how to divide profits in a partnership according to the percentage of capital each partner contributes.

If Partner A contributes 60% of the capital and Partner B contributes 40%, how s

Practice Questions

Questions & Step-by-Step Solutions

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