UGC NET Questions (Paper – 1)

Statements A, C and D express standard partnership principles. A is correct because profit shares are proportional to capital multiplied by duration of investment. C correctly defines a sleeping partner’s role. D is true as reducing capital during the year reduces the effective capital–time product. B is false since equal capital and time lead to a 1:1 ratio, and E is false because time is crucial when investments are made for different periods. Hence, A, C and D only are correct.

Option A:
Option A is correct because it combines the basic rule of capital–time proportionality with the concept of sleeping partners and the effect of withdrawing capital, while excluding B and E, which misstate profit ratios and the role of time.

Option B:
Option B is incorrect because it includes B, which incorrectly fixes the profit share at 1:2 even when capital and time are equal, thus contradicting the proportional rule.

Option C:
Option C is wrong as it also includes E, wrongly claiming that time is irrelevant in partnership problems, and therefore mixes incorrect statements with correct ones.

Option D:
Option D is incomplete since it omits A and includes only C and D, failing to explicitly state the capital–time proportionality on which partnership questions are based.

In partnership, profit is shared in proportion to the product of capital and time, so A is correct. If A’s capital is twice B’s for the same duration, A’s share becomes double B’s, making B correct. Partnership questions are naturally modelled with ratio and proportion, so E is also true. C is wrong because different times change the effective contribution, and D is wrong since a sleeping partner is still entitled to profit on capital. Thus the combination of A, B and E only is correct.

Option A:
Option A is correct because it captures the relationship of profit with both capital and time and notes the use of ratios, while excluding statements that misrepresent time dependence and sleeping partners’ shares. It fully matches how partnership questions are treated in aptitude tests.

Option B:
Option B omits E and therefore ignores the explicit link with ratio–proportion techniques, even though A and B themselves are true. Because it does not include all correct statements from the list, it is incomplete.

Option C:
Option C wrongly includes C, which claims time does not matter when capital is equal, contradicting the basic formula profit ∝ capital × time. Even though it contains A and E, adding C makes the overall combination incorrect.

Option D:
Option D uses B and E but unnecessarily adds D, which misstates that sleeping partners get no profit share. Since D is false, this combination cannot be accepted as correct.