When a business is owned by two or more persons who agree to contribute resources and share profits, it is most commonly classified as a:
Correct answer: B. Partnership
- A. Sole proprietorship
- B. Partnership
- C. Statutory corporation
- D. Cooperative bank
Explanation
A partnership is a business relationship in which two or more persons agree to carry on a business and share its profits. A sole proprietorship has one owner, while a statutory corporation is created by legislation.
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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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