Prudential reason of power sharing is based on careful calculation of _______________.

Gains and losses

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Money and man power

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Profit and gains

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Total income and losses

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Gains and losses
There are two reasons for Power Sharing. One is prudential and another one is moral. The prudential reason is based on a careful calculation of gains and losses. The prudential reasons stress that power-sharing will bring out better outcomes.
The moral reasons emphasise the very act of power sharing as valuable.

Suggest Corrections

Similar questions

A partnership is based on a ___ contract between two persons, who agree to share profits and losses of a business.

Q. (a) W, X, Y and Z are partners sharing profits and losses in the ratio of 1/3, 1/6, 1/3 and 1/6 respectively. Y retires and W, X and Z decide to share the profits and losses equally in future.
Calculate gaining ratio.
(b) A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 2. C retires from the business. A is acquiring 4/9 of C's share and balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio.

Q. A, B and C are partners sharing profits and losses I the ratio of

1 / 2, 3 / 10

and

1 / 5

, B retires from the firm, A and C decide to share the future profits and losses in

3 : 2

, Calculate gaining ratio.

Q. A,B and C are partners sharing profits and losses in the ratio of 4:3:2. C retires from the business. A is acquiring 4/9 of C's share and balance is acquired by B. Calculate the new profit-sharing ratio and gaining ratio.

A and B were partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit C as a new partner. The profit and loss sharing shall be so adjusted that A receives half of B's share and C receives one-third of A's share. Calculate new profit sharing ratio and sacrificing ratio.

Join BYJU'S Learning Program