Question:
The ratio in which the remaining partners acquire the retiring partner's share is called _________. (Gaining Ratio/Sacrifice Ratio)
The ratio in which the remaining partners acquire the retiring partner's share is called _________. (Gaining Ratio/Sacrifice Ratio)
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The gaining ratio is the percentage by which each remaining partner increases their share when another partner retires.
Updated On: Jan 5, 2026
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Solution and Explanation
Step 1: Understanding the ratio.
When a partner retires or exits, the remaining partners acquire the retiring partner's share. The ratio in which they acquire this share is called the gaining ratio.
Step 2: Conclusion.
The correct answer is Gaining Ratio, as this is the ratio that shows how much the remaining partners gain from the retiring partner's share.
When a partner retires or exits, the remaining partners acquire the retiring partner's share. The ratio in which they acquire this share is called the gaining ratio.
Step 2: Conclusion.
The correct answer is Gaining Ratio, as this is the ratio that shows how much the remaining partners gain from the retiring partner's share.
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