P and Q invested Rs. 85,000 and Rs. 15,000 respectively to start a venture. In what proportion should the 2-year profit be split between them?
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Answer: E. None of these
Explanation
Investment profits are distributed proportionally based upon the capital amounts contributed. P invested eighty-five thousand while Q invested fifteen thousand currency units. Simplifying the ratio of eighty-five thousand to fifteen thousand yields seventeen to three. Venture capital partnerships distribute earnings in direct proportion to initial financial stakes. Ratio simplification divides both investment amounts by their greatest common divisor. Investment durations are equal in this scenario, so capital amounts solely determine the split.
Business founders establish profit-sharing ratios based on initial capital contributions. Corporate shareholder dividends reflect proportional ownership stakes in the enterprise. Legal partnership agreements explicitly define capital-based profit distribution terms. Option three to four represents an incorrect capital ratio calculation. Option three to five miscalculates the investment proportion between the partners. Option fifteen to twenty-three is incorrect because the simplified ratio is seventeen to three.
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- Mathematics
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