A and B start a business with Rs.6000 and Rs.8000 respectively. How should…
2025
A and B start a business with Rs.6000 and Rs.8000 respectively. How should they share their profits at the end of one year?
- A.
1:2
- B.
3:4
- C.
2:5
- D.
3:7
Attempted by 1243 students.
Show answer & explanation
Correct answer: B
Answer: A and B should share the profits in the ratio 3:4.
Explanation:
Profits are shared in proportion to the amounts invested.
Investment of A = 6000 and investment of B = 8000.
Simplify the ratio 6000:8000 by dividing both numbers by their greatest common divisor (2000): 6000 ÷ 2000 = 3, 8000 ÷ 2000 = 4.
Therefore the profit-sharing ratio is 3:4.