Bill and Bob Share Profits of Their Partnership Firm in the Ratio

question 45

Multiple Choice

Bill and Bob share profits of their partnership firm in the ratio of 4:1.If the net profit of the firm is $25,000,calculate the share of Bill's profit.

• A)$25,000
• B)$15,000
• C)$20,000
• D)$5000

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Definitions:

Insurer

A company or entity that provides coverage, typically in the form of compensation resulting from loss, damage, illness, or death, in exchange for premium payments.

Principal-Agent Problem

A situation in which there is a conflict of interest between a principal (such as an owner or shareholder) and an agent (such as a manager or employee) because the agent is motivated to act in their own best interests rather than those of the principal.

Effort and Output

The relationship between the level of effort applied by workers and the quantity of output produced as a result.

Low Effort

Low effort refers to minimal or inadequate application of energies or resources towards achieving a task or goal, often resulting in suboptimal performance.