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Change in profit sharing ratio

Authored by Harshita kumar

Professional Development

12th Grade

Used 1+ times

Change in profit sharing ratio
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6 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is meant by "Profit Sharing Ratio" in a partnership?

The ratio in which partners share their profits

The ratio in which partners contribute capital

The ratio in which partners share losses

The ratio in which partners contribute assets

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When might a change in the profit sharing ratio occur?

When a new partner is admitted

When a partner retires

When there is a change in the partnership agreement

All of the above

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following statements is true regarding a change in the profit sharing ratio?

It requires the consent of all partners

It does not affect the distribution of profits

It affects only the existing partners, not new ones

It cannot be done once the partnership is formed

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is the new profit sharing ratio determined when there is a change?

By mutual agreement among partners

Based on the capital contributed by each partner

By the amount of work each partner does

By the seniority of each partner in the firm

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the consequences of a change in the profit sharing ratio?

It may affect the amount of capital each partner has invested

It may affect the distribution of profits and losses

It may change the decision-making power of partners

All of the above

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is not a reason for a change in the profit sharing ratio?

Introduction of a new partner

Retirement of a partner

Death of a partner

Profit decrease in the firm

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