Question

Sita and Zoya are two friends belonging to Hindu and Muslim religion. They start a
business of handicrafts together. They decide to open the factory in rural area and give
employment opportunities to local residents.
a) Which form of business organisation have they opted?

Answer 1

Answer:

Partnership

Explanation:

Partnership is a popular form of business for small-scale and medium-scale business. As the size of the business grows, one person is not enough to carry on managerial activities. Therefore two or more persons form partnership to carry on business. This form of business starts to overcome the problem of Sole Proprietorship.

Hope this helps :D

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