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R and S are partners sharing profits in the ratio of 5 : 3. T joins the firm as a new partner. R gives 1/4th of his share and S gives 1/5th of his share to the new partner. Find out new profit-sharing ratio. |
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Answer» Profit sharing refers to various incentive plans introduced by businesses that PROVIDE DIRECT or indirect payments to employees that depend on company's profitability in ADDITION to employees' regular salary and bonuses. In publicly traded companies these plans typically AMOUNT to allocation of shares to employees. |
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