Question

P and Q started a business and invested for the same period of time. If the ratio of their investment is 4 : 5, then, their profit distribution would also in the ratio of ?

• A. Yes
• B. No
• C. Insufficient Data
• D. Ratio is the same for A but nor for B

Answer 1

The correct option is A

Yes

In a partnership business, if the capital of each partner is invested for the same period of time, then the profit or loss is distributed according to their invested capital.

Hence, as both of them invested for the same time and the ratio of their investment is 4 : 5, their profit distribution would also in the ratio of 4 : 5.