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Aptitude Topics

Partnership

Partnership in quantitative aptitude refers to problems where two or more individuals invest money in a business and share profits based on their capital and time. The key concept is that profit is directly proportional to the product of investment and time.

Fundamental Principles

Partnership Formula (Core Rule)

Profit Share Ratio = (Capital × Time). Each partner’s share is calculated based on this ratio.

Simple Partnership

When all partners invest for the same time period, profit ratio depends only on their capital ratio.

Compound Partnership

When partners invest for different time periods, profit ratio depends on both capital and time.

Essential Formulation Tips

  • Always convert time into same units (months or years).
  • First calculate Capital × Time for each partner, then form ratio.
  • If a partner joins late, count time from joining date.
  • If a partner leaves early, count only till leaving time.

Shortcut Execution Techniques

  • Shortcut: Ignore profit initially → find ratio using (C × T) → divide total profit accordingly.
  • If capital is same, profit ratio = time ratio.
  • If time is same, profit ratio = capital ratio.

Contextual Inquiries (FAQs)

Q: How to solve partnership questions quickly in exams?

A:

Q: What is the most common mistake in partnership problems?

A: