Zach, Khalid, and Ira Form a Partnership

question 6

Multiple Choice

Zach, Khalid, and Ira form a partnership. Zach's capital contribution to the firm is $5,000, while Khalid and Ira contribute $10,000 each. The parties do not make any express agreement concerning how profits are to be divided. However, they agree to share losses as follows: Zach, 40%, Khalid and Ira, 30% each. During the first year of the partnership, the business makes a profit of $30,000. Given this scenario, what will be Zach's share of the profit?

• A) $5,000
• B) $9,000
• C) $10,000
• D) $12,000

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Definitions:

Arteries

Blood vessels that carry oxygenated blood away from the heart to various parts of the body.

Capillary Bed

A network of capillaries, small blood vessels, enabling the exchange of oxygen, carbon dioxide, and nutrients.

Pulmonary Artery

Artery that carries oxygen-poor blood from the heart to a lung.