**1) Partnership:**When two or more than two persons run a business jointly, they are called

**partners**and the deal is known as

**partnership.**

**2) Ratio of Divisions of Gains:**

**I)**When investments of all the partners are for the same time, the

**gain or loss**is distributed among the partners in the ratio of their investments.

Suppose

**A and B invest Rs. x and Rs. y**respectively for a year in a business, then at the end of the year:

**(A's share of profit) : (B's share of profit) = x : y.**

**II)**When investments are for different time periods, then equivalent capitals are calculated for a unit of time by taking (capital x number of units of time). Now gain or loss is divided in the ratio of these capitals.

Suppose

**A invests Rs. x for p months and B invests Rs. y for q months**then,

**(A's share of profit) : (B's share of profit)= xp : yq.**

3) If n parnters are investing for different period of time then

Suppose

**p1 invest Rs C1 for T1 months, P2 invests C2 Rs. for T2 months and Pn invests Rs. Cn for Tn months**so on....

**(P1's share of profit) : (P2's share of profit) :........: (Pn's share of profit): C1*T1 : C2*T2 : ..... : Cn*Tn**

4) A partner who manages the the business is known as a

**working partner**.

5) A Partner who simply invests the money is a

**sleeping partner**.

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