Question

state the basic presumption in maximum loss method and proportionate capital method of piecemeal distribution among the partners​

Answer 1

Answer:

If a partner's share of the loss is more than the capital, he should be treated as “insolvent” and, in accordance with Garner vs. Murray, the loss should be transferred to the other partners in the ratio of capitals just before dissolution.

Answer 2

Answer:

If a partner's loss is higher than the capital, he should be considered "insolvent".

Explanation:

To generate high returns, one has to invest in market-linked investments as against fixed-income products. An asset class that has the potential to deliver high returns is equity.