Home › CBSE Class 11 (Commerce) › Business Studies › Forms of Business Organisation › Two people run a charity kitchen without profit …
Two people run a charity kitchen without profit motive. Why is it no partnership?
APartners must be relatives
BCharity needs a company form
CIt needs a profit motive
DCharity needs seven persons
Answer & Solution
Correct answer: C. It needs a profit motive
The business must be lawful and run with the motive of profit, so charitable purposes do not qualify.
Related questions
Ease of transferring ownership is greatest in which form, leaving out private companies?From an investor's viewpoint, which form is more suitable as its risk is limited?For a business needing a permanent structure, which form is more suitable?Which form of business is least expensive to set up?Why does a private company not need to issue a prospectus?Which words must a private company use after its name?What is the minimum number of members needed to form a public company?Free transfer of shares does not apply to which type of company?