In which situation can partnership be beneficial for a business?
Answer and explanation
Correct answer: When partners have complementary skills and resources
Partnership can strengthen a business when partners contribute different but compatible skills, capital, contacts, or experience. Clear agreement about roles, decisions, profit sharing, and responsibilities is also important for reducing conflict. Working without agreement, unclear duties, or secret decisions weakens cooperation. Therefore, complementary skills and resources make option A the beneficial situation.
Frequently asked questions
What is the correct answer to this question?
When partners have complementary skills and resources
Why is this the correct answer?
Partnership can strengthen a business when partners contribute different but compatible skills, capital, contacts, or experience. Clear agreement about roles, decisions, profit sharing, and responsibilities is also important for reducing conflict. Working without agreement, unclear duties, or secret decisions weakens cooperation. Therefore, complementary skills and resources make option A the beneficial situation.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Financial Management. Topic: Financing decision.
