Mr. Y and Mr. Z are planning to share their capital to run a business. They are going to employ which of the following type of business?
Correct answer: B. Partnership
- A. Sole-proprietorship
- B. Partnership
- C. Corporation
- D. None of the given options
Explanation
A partnership is formed when two or more persons contribute capital and agree to operate a business together. A sole proprietorship has one owner, while a corporation is a separate legal entity formed through incorporation.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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