Question

Clara and Sandra collaborate to open a cafe. They come to an arrangement wherein Sandra manages the cafe from Monday to Wednesday, Clara manages it from Thursday to Saturday, and both jointly manage it on Sunday. Both Clara and Sandra share the profits of the business equally while facing a personal liability for any debts or losses that the cafe may incur. In this scenario, Clara and Sandra most likely _____.

Answer 1

Answer:

general partnership

Explanation:

General partnership -

It refers to the management of a particular business , by two or more partners in a predefined manner , where the profit is shares equally amongst the partners , is referred to as general partnership .

The decision about the business is taken along with all the partners ,like the financial decisions.

Any loss or profit is shares equally amongst all .

Hence , from the given scenario of the question ,

Sandra and Clara enters into a general partnership .