Why is entity B considered the base/reference point in percentage calculations?

In percentage calculations, entity B is considered the base or reference point because it serves as the fixed point of comparison. When calculating a percentage, it is essential to have a reference point to derive a meaningful fraction of change. Designating one entity as the reference allows for a consistent calculation method, enabling the result to represent how much one value (entity A) differs in relation to that fixed point.

For instance, if you need to find out what percentage entity A is of entity B, or how much A has increased or decreased relative to B, B provides the steady baseline necessary for these comparisons. This is crucial for making accurate assessments and interpretations of the differences, increases, or decreases between the two entities. The other options, while they may hold true in certain contexts, do not fundamentally explain why a base or reference point is selected for percentage calculations. Thus, the choice of entity B as the reference point underscores its role in providing a stable and consistent frame of reference for the calculation.