MHB What are the formulas of partnership in business?

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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 Division 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 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) = px : qy
3. Working and Sleeping Partners:
A partner who manages the business is known as a working partner and the one who simply invests the money is a sleeping partner
I hope these concepts will be helpful for you to solve some of your math problems.
 
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burgess said:
I hope these concepts will be helpful for you to solve some of your math problems.
Hopefully, thanks for sharing.
 
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