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Arun and Amrita agree to start a business together by pooling their resources and sharing profits. What type of business structure are they forming? - Commercial Applications

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Question

Arun and Amrita agree to start a business together by pooling their resources and sharing profits. What type of business structure are they forming?

Options

  • Sole Proprietorship

  • Partnership

  • Joint Stock Company

  • Cooperative Society

MCQ
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Solution

Partnership

Explanation:

A partnership is a voluntary association of two or more persons who agree to carry on some business jointly and share its profits and losses. Since Arun and Amrita are starting a business together, pooling resources, and sharing profits, this clearly fits the definition of a partnership.

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Chapter 3: Ownership Structures - Partnership - EXERCISES [Page 40]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 3 Ownership Structures - Partnership
EXERCISES | Q I. 13. | Page 40
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