The ratio by which the existing partners lose in favour of the new partner is known as the __________.
The sacrificing ratio measures the shares of profit that existing partners surrender to an incoming partner. Each partner's sacrifice equals the old profit share minus the…
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The ratio by which the existing partners lose in favour of the new partner is known as the __________.
Answer and explanation
Correct answer B
The sacrificing ratio measures the shares of profit that existing partners surrender to an incoming partner. Each partner's sacrifice equals the old profit share minus the new profit share.
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Tamil Nadu SET (TNSET)