In a three-way joint venture, the first investor contributes capital, the second contributes time and strategy, and the third brings a network of suppliers. They agree to share profits in the ratio 3 : 2 : 2. If the venture earns Rs. 1,40,000 in the first year, how much should the strategist (second partner) receive?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs. 40,000.
Profit share ratio = 3 : 2 : 2
Total profit = 140000
Strategist’s share = (2/7) × 140000 = 40000