If the new partner is entitled to \(\frac{2}{5}\) of the profit, what total share of the profit will remain jointly for the old partners?

Correct answer: \(\frac{3}{5}\)

The whole profit is taken as \(1\). Therefore, the combined remaining share of the old partners is \(1-\frac{2}{5}=\frac{5}{5}-\frac{2}{5}=\frac{3}{5}\), so option A is correct. \(\frac{2}{5}\) is the new partner’s share, not the remaining combined share of the old partners. Exam tip: subtract the incoming partner’s share from the total share \(1\) to find the old partners’ combined share.