Question

When Kirk and Elisa formed their general partnership, Kirk contributed 90 percent of the capital, and Elisa contributed 10 percent. In the partnership agreement, they did not specify the percentage of the profits each partner would receive. In the first year of their partnership, they earned $35,000 in profits. Elisa's share of the profits is _______.

Answer 1

Her share is $3500

Explanation:

As a general rule, if they did not make any specifications on how they would share the profit, then they should share it according on how percentage of capital they contributed. Since Elisa only contributed 10%, then she should get only 10% of profit, as a result, her share is 35000*0.1 = $3500.