What does partnership mean in business?
Answer and explanation
Correct answer: Two or more people doing business together
In a partnership, two or more persons agree to carry on a business and share its responsibilities according to their agreement and applicable law. Partners may contribute capital, skills, or labour and may share profits and losses. The exact rights depend on the partnership arrangement, but one customer or hidden money does not define partnership. Hence, A is correct.
Frequently asked questions
What is the correct answer to this question?
Two or more people doing business together
Why is this the correct answer?
In a partnership, two or more persons agree to carry on a business and share its responsibilities according to their agreement and applicable law. Partners may contribute capital, skills, or labour and may share profits and losses. The exact rights depend on the partnership arrangement, but one customer or hidden money does not define partnership. Hence, A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Forms of Business Organisation. Topic: Partnership.
