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A and B invest in a business with a profit-sharing ratio of 1:4. If the total pr

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Question: A and B invest in a business with a profit-sharing ratio of 1:4. If the total profit is $5000, how much does A receive?

Options:

  1. $1000
  2. $500
  3. $2000
  4. $4000

Correct Answer: $1000

Solution: 

Total parts = 1 + 4 = 5. A\'s share = (1/5) * 5000 = $1000.

A and B invest in a business with a profit-sharing ratio of 1:4. If the total pr

Practice Questions

Q1
A and B invest in a business with a profit-sharing ratio of 1:4. If the total profit is $5000, how much does A receive?
  1. $1000
  2. $500
  3. $2000
  4. $4000

Questions & Step-by-Step Solutions

A and B invest in a business with a profit-sharing ratio of 1:4. If the total profit is $5000, how much does A receive?
  • Step 1: Identify the profit-sharing ratio between A and B, which is 1:4.
  • Step 2: Add the parts of the ratio together: 1 (for A) + 4 (for B) = 5 parts in total.
  • Step 3: Determine A's share of the total profit. A's share is 1 part out of the total 5 parts.
  • Step 4: Calculate A's share of the profit by multiplying A's part by the total profit: (1/5) * 5000.
  • Step 5: Perform the calculation: (1/5) * 5000 = 1000.
  • Step 6: Conclude that A receives $1000.
  • Profit Sharing Ratio – Understanding how profits are divided based on the agreed ratio between partners.
  • Fraction Calculation – Calculating a portion of a total based on a fraction derived from the profit-sharing ratio.
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