Question

If Anna originally invested $5,000 and Caleb invested $1,000 in the business, and the business made a profit of $60,000, how would the profit be split?

a. Regardless of what is in the partnership agreement, Anna will receive $50,000 of the profits and Caleb will receive $10,000.

b. If the partnership agreement does not specify how the profits will be split, then the proceeds will be split evenly ($30,000 to both).

c. If the partnership agreement specifies how the profits will be split, then the proceeds will be distributed accordingly, otherwise the profits will be split evenly between Anna and Caleb.

d. If the partnership agreement specifies how the profits will be split, then they will be split using the terms of the agreement.

Answer 1

Answer:

The answer is "Option A and B".

Explanation:

Irrespective of any terms of the cooperation arrangement, that corporation receives $50,000 and its company receives $10,000.

Unless the new agreement doesn't state how well the profits would be distributed, that revenues are shared evenly ($30,000 to each of them).

If the collaboration contract specifies that your benefits are distributed, therefore the conditions of the partnership are split" but "If it does not tell you how the earnings are split, then these gains are divided equal ($30,000 to both).