A and B invest in a business with A investing $12,000 and B investing $18,000. I

Practice Questions

Q1
A and B invest in a business with A investing $12,000 and B investing $18,000. If the total profit is $30,000, how much does A receive?
  1. $12,000
  2. $10,000
  3. $8,000
  4. $15,000

Questions & Step-by-Step Solutions

A and B invest in a business with A investing $12,000 and B investing $18,000. If the total profit is $30,000, how much does A receive?
Correct Answer: $12,000
  • Step 1: Identify the amount A invested, which is $12,000.
  • Step 2: Identify the amount B invested, which is $18,000.
  • Step 3: Calculate the total investment by adding A's and B's investments: 12000 + 18000 = 30000.
  • Step 4: Calculate A's share of the total investment by dividing A's investment by the total investment: 12000 / 30000.
  • Step 5: Multiply A's share by the total profit to find out how much A receives: (12000 / 30000) * 30000 = 12000.
  • Step 6: Conclude that A receives $12,000.
  • Profit Sharing – Understanding how profits are distributed based on the proportion of investment made by each partner.
  • Proportional Calculation – Calculating shares based on total investment and individual contributions.
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