In which situation can partnership be beneficial for an entrepreneur?
Answer and explanation
Correct answer: When partners bring different skills, capital, or market access
A partnership can combine resources that one person may not possess, such as finance, technical expertise, management ability, contacts, or market access. Complementary strengths can improve decision-making and business capacity when roles and terms are clearly agreed. Repeated mistakes, undocumented responsibilities, and rumour-based decisions create conflict and risk. Thus, option A describes a potential benefit.
Frequently asked questions
What is the correct answer to this question?
When partners bring different skills, capital, or market access
Why is this the correct answer?
A partnership can combine resources that one person may not possess, such as finance, technical expertise, management ability, contacts, or market access. Complementary strengths can improve decision-making and business capacity when roles and terms are clearly agreed. Repeated mistakes, undocumented responsibilities, and rumour-based decisions create conflict and risk. Thus, option A describes a potential benefit.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Forms of Business Organisation. Topic: Partnership.
