B is corrent because in the case of either a profit or a loss, Flat will have a greater advantage. When a profit occurs, Flat receives a greater amount because s/he is allocated [20% x profits + 40% (80% x profits)] while Iron only receives [60% (80% x profits)]. In the case of a loss, Flat bears a smaller percentage share of the loss (only 40%) and thus has a greater advantage.
A is incorrect. In the case of either a profit or a loss, Flat will have a greater advantage. When a profit occurs, Flat receives a greater amount because s/he is allocated [20% x profits + 40% (80% x profits)] while Iron only receives [60% (80% x profits)]. In the case of a loss, Flat bears a smaller percentage share of the loss (only 40%) and thus has a greater advantage.
C is incorrect. In the case of either a profit or a loss, Flat will have a greater advantage. When a profit occurs, Flat receives a greater amount because s/he is allocated [20% x profits + 40% (80% x profits)] while Iron only receives [60% (80% x profits)]. In the case of a loss, Flat bears a smaller percentage share of the loss (only 40%) and thus has a greater advantage.
D is incorrect. In the case of either a profit or a loss, Flat will have a greater advantage. When a profit occurs, Flat receives a greater amount because s/he is allocated [20% x profits + 40% (80% x profits)] while Iron only receives [60% (80% x profits)]. In the case of a loss, Flat bears a smaller percentage share of the loss (only 40%) and thus has a greater advantage.
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