The ratio in which the old partners agree to sacrifice their share of profit in favour of the incoming partner is called _________.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Sacrificing Ratio
A new partner gets his share of profit out of the old partners' shares. For each old partner, sacrifice = old share − new share, and the goodwill the new partner brings is shared in this ratio.
NCERT (2026-27 edition): |