In which situation can partnership become weak for an enterprise?
Answer and explanation
Correct answer: When roles and profit sharing are not clear
A partnership works better when partners clearly agree on duties, authority, capital contribution, profit sharing, decision-making, and dispute handling. If these matters are unclear, partners may duplicate work, avoid responsibility, or disagree about money and control. Honesty, common goals, and a written agreement generally strengthen cooperation, although the agreement must also be understood and followed.
Frequently asked questions
What is the correct answer to this question?
When roles and profit sharing are not clear
Why is this the correct answer?
A partnership works better when partners clearly agree on duties, authority, capital contribution, profit sharing, decision-making, and dispute handling. If these matters are unclear, partners may duplicate work, avoid responsibility, or disagree about money and control. Honesty, common goals, and a written agreement generally strengthen cooperation, although the agreement must also be understood and followed.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Forms of Business Organisation. Topic: Partnership.
