Question

Mary and Jeff entered into a partnership agreement. However, the agreement didn't state how income and losses would be divided. The law states that income will be divided

A. Equally

B. According to investments

C. According to abilities

D. None of the above

Answer 1

Hi there

the agreement didn't state how income and losses would be divided
So the dividend will be distributed according to the share of capital
for example Assume that Mary's share of capital is 1000 and Jeff's share of capital is 2000 and income is 1500

So we want to distribute the income 1500 between them according to their investments
Mary share of income is
1,500×(1,000÷(1,000+2,000))=500
Jeff share of income is
1,500×(2,000÷(1,000+2,000))=1,000

So it's b

Good luck!

Answer 2

The correct answer to your questions is letter A. Equally.