In a partnership, the relationship among partners is primarily created by:
Correct answer: D. An agreement between the partners
- A. A government appointment order
- B. A decision of the business creditors
- C. A share certificate issued by a company
- D. An agreement between the partners
Explanation
A partnership arises from an agreement to carry on a business and share its profits. The agreement may be written or oral, subject to the applicable law and circumstances.
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About Nature and Forms of Business Organisation
Business organisation combines people, capital, materials and entrepreneurship to produce goods or services and earn profit, while also meeting customer and social needs. Coverage includes sole proprietorships, partnerships, companies and cooperatives, with comparisons of ownership, liability, control, profit sharing, continuity and legal status.
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