Jutta and Carl have a small medical practice that operates as a partnership. Jutta does 70% of the work and Carl does 30%. However, Carl invested 60% of the money required to start the business. If the company makes $100,000 in profit this year, how much will each partner receive?
A) Jutta will receive $70,000; Carl will receive $30,000
B) Jutta will receive $40,000; Carl will receive $60,000
C) Jutta will receive $60,000; Carl will receive $40,000
D) Profits will be shared in the proportion specified in the partnership agreement.

Question

Quizplus · Accepted Answer

The distribution of profits in a partnership depends on the terms specified in the partnership agreement, which may consider factors like work contribution, capital investment, or other agreed-upon terms, not just work done or capital invested.

Jutta and Carl Have a Small Medical Practice That Operates