In partnership accounts, sacrificing ratio is the proportion in which old partners give up their share for a new partner. Gaining ratio is the proportion in which the remaining partners gain the share of a retiring partner. My books lay this out clearly, with all the formulas.
But these neat ratios feel distant from the bargaining in my mother's shop, where partnership is about trust, not just calculation. When my cousin joined her business, no one spoke of 'sacrificing ratio'—they just made space.
So while the textbook answer is precise, I see that real sharing adjusts to the person, not just the profit.
#startups#business
Jump in to reply — no account needed.