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How is the new profit-sharing ratio determined when a new partner is admitted?
  • a)
    It is always equal among all partners
  • b)
    It depends on the agreement between partners
  • c)
    It is based on the firm's revenue
  • d)
    It is set by the new partner
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
How is the new profit-sharing ratio determined when a new partner is a...
The new profit-sharing ratio is determined based on the agreement among the partners on how the new partner will acquire his share from the existing partners.
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How is the new profit-sharing ratio determined when a new partner is admitted?a)It is always equal among all partnersb)It depends on the agreement between partnersc)It is based on the firm's revenued)It is set by the new partnerCorrect answer is option 'B'. Can you explain this answer?
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