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?

Correct — C. The profit is split in the agreed ratio 3 : 2 : 2.

Total parts = 3 + 2 + 2 = 7
One part = 1,40,000 ÷ 7 = 20,000

Second partner = 2 parts = 2 × 20,000 = Rs. 40,000 → option (c)

Check: 60,000 + 40,000 + 40,000 = 1,40,000 ✓

Why the others are wrong

• (a)
  Rs. 30,000 — Rs. 30,000 is 1.5 parts. The ratio then gives the first partner 45,000 and the third 30,000, a total of only 1,05,000.
• (b)
  Rs. 35,000 — Rs. 35,000 would give the first partner 52,500 and the third 35,000, a total of 1,22,500, short of the 1,40,000 earned.
• (d)
  Rs. 45,000 — Rs. 45,000 would give the first partner 67,500 and the third 45,000, a total of 1,57,500, more than the 1,40,000 earned.

Once partners agree a profit-sharing ratio, that ratio decides the split. What each brings, whether capital, time and strategy, or a supplier network, changes nothing in the arithmetic.

A ratio a : b : c splits a total T into T × a⁄(a + b + c), T × b⁄(a + b + c) and T × c⁄(a + b + c).

The second and third partners hold equal terms (2 and 2), so their shares must be equal, a quick check on any answer.

Key facts

• Share = total × own parts ÷ sum of parts.
• Equal ratio terms mean equal shares.
• The shares must add back to the total.

Common traps

• Weighting the shares by the kind of contribution: the stem fixes the ratio at 3 : 2 : 2, so capital versus strategy does not matter.
• Splitting equally among three: 1,40,000 ÷ 3 ≈ 46,667 is a head count, not 3 : 2 : 2.

No directly related past PYQ was found.