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A B and C share 2:1:7. C retires and A B new ratio is 1:1. Who gained more share?

Answer and explanation

Correct answer: B

The direct answer is A, B. The old ratio A:B:C is 2:1:7, so the total is 10 parts. A’s old share is 2/10 and B’s is 1/10. After C retires, A and B share equally, so each receives 1/2, or 5/10. A’s gain is 5/10 − 2/10 = 3/10. B’s gain is 5/10 − 1/10 = 4/10. Since 4/10 is greater than 3/10, B gained more. Option A is correct. Option B is wrong because A gained only 3/10. Option C is wrong because the gains are unequal. Option D is wrong because both partners together take C’s share, but each does not gain nothing. Exam cue: calculate each new share minus that partner’s old share; never compare only the new ratio.

Related tags

Compare GainNew RatioRetirement

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