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Question

Partnership is formed with an object to ________.

A
earn profit
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B
not to earn profit
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C
welfare of members
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D
none of these
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Solution

The correct option is A earn profit
In all the business undertakings in the private sector, the main motive is to earn profit. Profit is the driving force before and after entering into the business field. In fact profit is the oil which drives the wheels of a business. Members in a partnership firm enters a business with a expectation of high profit. Profit is the total revenue from sales minus the total cost of resources employed by the partners.

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