Vidyalelo
Commerce · Q953

Financial Management

Graduate and Post Graduate · Commerce · question 953

Q953

A type of business ownership in which two or more entities join together for profit purpose is classified as

A.
partnership
Answer
B.
joint business
C.
joint profit
D.
corporate business

Answer: Option A

Solution

Answer: Option A
Solution:
A type of business ownership in which two or more entities join together for profit purpose is classified as partnership. A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in some partnerships, all partners share liabilities and profits equally, while in others, partners have limited liability.