if 40 people start their business with 40000 rupees capital ( 1000 by each) and earn profit of 200000 rupees in one month. ( in which: 40,000 capital + 160,000 profit)

now: there are three options:

1) every month 40 members divide profit of 160,000 equally and bring home. and book value remains same every month. and IF in Any month of year any new member join as a 41 member by giving 1000 of capital share and get profit of as same as other 40 member. THIS will bring no change in total book value But :-

2) if all 40 members choose not to withdraw their profit every month then book value will start increasing and then if 41st member join in 6th month what will be the Deposit?

or if 41st member choose to join in 10th month or after 2 years , what will be then Deposit?

3) if there is Non-profitable organization on the place of this company who do not sell its shares and want a member to join, what will be the solution??

Answer rating: 100% (QA)

ANSWER 1 All members may share profits on the basis of capital held by t... View the full answer