Question

'Partnership business can't be successful without mutual understanding'. Justify this statement.​

Answer 1

Answer:

In conclusion, every partnership is unique, but all partnerships should include the above qualities to ensure mutual success. Remember both parties should be communicative, accessible, flexible, provide mutual, and have measurable results. These qualities are crucial in optimizing your partnership agreements.

Answer 2

Since a partnership business is not necessarily registered with the partnership deed, it is important to have a mutual understanding.

Explanation:

1. A partnership is a form of business organisation where people come together with mutual understanding.
2. A partnership involves sharing the profits, risks, and expenses of a business as per the understanding.
3. If the partner or a number of partner creates problems, the operations of partnership firm could not be carried on and it has to be dissolved.
4. Since the registration of partnership is not mandatory, if there is no understanding among the partners, the business will certainly fail.