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Question : ‘Gaining Ratio’ means - 

Option 1: Old Ratio – New Ratio

Option 2: Old Ratio – Sacrificing Ratio

Option 3: New Ratio – Old Ratio

Option 4: New Ratio – Sacrificing Ratio


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: New Ratio – Old Ratio


Solution : Gaining ratio is a form of financial tool that aids in figuring out how much of an existing partner's profits the remaining partners of a firm will receive in the event of his death or retirement. The ratio by which they split the profits is known as gaining ratio.

Gaining Ratio = New Ratio – Old Ratio

Hence the correct answer is option 3.

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