Where a change occurs in the constitution of a firm and...

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Where a change occurs in the constitution of a firm and no new agreement is made

A. The ratio of profit sharing shall become equal for all the partners

B. The ratio of profit sharing shall remain the same to the extent to which it is consistent with the altered composition of the firm

C. The ratio of profit sharing shall change in the ratio of capital contributions

D. The ratio of profit sharing shall change in the ratio of personal efforts/labour input of the partners

Answer: Option B

This Question Belongs to Law >> Indian Partnership Act

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