Question

4. You are partners with Alice and Mark. You contributed 50% of the capital, Alice contributed 30%, and Mark contributed 20%. (a) How would the annual profits of $100,000 be distributed among all three of you? (b) Using these same numbers, how would an annual loss of $80,000 be distributed between the three of you?

Answer 1

(a)
- You would get $50,000
- Alice would be getting $30,000
- Mark would be getting $20,000
(b)
- You would get $40,000
- Alice would get $24,000
- Mark would be getting $16,000