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N and O invest in a business with N investing $2000 and O investing $3000. If th

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Question: N and O invest in a business with N investing $2000 and O investing $3000. If the profit is $1000, how much does O receive?

Options:

  1. $400
  2. $600
  3. $500
  4. $700

Correct Answer: $600

Solution:

Total investment = 2000 + 3000 = 5000. O\'s share = (3000/5000) * 1000 = $600.

N and O invest in a business with N investing $2000 and O investing $3000. If th

Practice Questions

Q1
N and O invest in a business with N investing $2000 and O investing $3000. If the profit is $1000, how much does O receive?
  1. $400
  2. $600
  3. $500
  4. $700

Questions & Step-by-Step Solutions

N and O invest in a business with N investing $2000 and O investing $3000. If the profit is $1000, how much does O receive?
  • Profit Sharing – Understanding how profits are distributed based on the proportion of investment made by each partner.
  • Ratio Calculation – Calculating shares based on the ratio of individual investments to total investments.
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