In which situation can partnership be beneficial for an enterprise?
Answer and explanation
Correct answer: When partners bring different skills and clear responsibilities
Partnership can combine complementary skills, capital, experience, contacts, and effort. Its benefits are stronger when partners agree on roles, decision-making, contributions, and accountability. Unclear duties, secrecy, and lack of trust create conflict and weaken the enterprise. Therefore the situation in A describes a condition under which partnership can be beneficial.
Frequently asked questions
What is the correct answer to this question?
When partners bring different skills and clear responsibilities
Why is this the correct answer?
Partnership can combine complementary skills, capital, experience, contacts, and effort. Its benefits are stronger when partners agree on roles, decision-making, contributions, and accountability. Unclear duties, secrecy, and lack of trust create conflict and weaken the enterprise. Therefore the situation in A describes a condition under which partnership can be beneficial.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Forms of Business Organisation. Topic: Partnership.
