What happens in partnership?
Answer and explanation
Correct answer: Two or more people run a business together
A partnership is a form of business organisation in which two or more persons agree to carry on a business and share its results according to their agreement and applicable law. Partners may contribute money, skills, or effort. Hence option A is correct. Customer exclusion and absence of financial records are not defining features of partnership.
Frequently asked questions
What is the correct answer to this question?
Two or more people run a business together
Why is this the correct answer?
A partnership is a form of business organisation in which two or more persons agree to carry on a business and share its results according to their agreement and applicable law. Partners may contribute money, skills, or effort. Hence option A is correct. Customer exclusion and absence of financial records are not defining features of partnership.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Forms of Business Organisation. Topic: Partnership.
