If A and B invest in a business with A investing $40,000 and B investing $60,000

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What’s inside this PDF?

Question: If A and B invest in a business with A investing $40,000 and B investing $60,000, and they agree to share profits equally, how much profit will A receive if the total profit is $20,000?

Options:

$10,000
$8,000
$12,000
$6,000

Correct Answer: $10,000

Solution:

Since they share profits equally, A\'s share = 20000 / 2 = $10,000.

If A and B invest in a business with A investing $40,000 and B investing $60,000

Practice Questions

If A and B invest in a business with A investing $40,000 and B investing $60,000, and they agree to share profits equally, how much profit will A receive if the total profit is $20,000?

$10,000
$8,000
$12,000
$6,000

Questions & Step-by-Step Solutions

If A and B invest in a business with A investing $40,000 and B investing $60,000, and they agree to share profits equally, how much profit will A receive if the total profit is $20,000?

Step 1: Identify the total profit from the business, which is $20,000.
Step 2: Understand that A and B agreed to share the profits equally.
Step 3: Since they share profits equally, divide the total profit by 2.
Step 4: Calculate A's share: $20,000 divided by 2 equals $10,000.
Step 5: Conclude that A will receive $10,000 from the total profit.

Profit Sharing – Understanding how profits are distributed among partners based on their agreement.
Investment Proportions – Recognizing that the amount invested does not affect the profit share if an equal sharing agreement is in place.

If A and B invest in a business with A investing $40,000 and B investing $60,000

What’s inside this PDF?

If A and B invest in a business with A investing $40,000 and B investing $60,000

Practice Questions

Questions & Step-by-Step Solutions

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