Multiple choice

X and Y agree to work together as carpenters but X shall receive all profit and shall pay wages to Y. The relation between X and Y is that of

  1. partners

  2. carpenters

  3. labourers

  4. master-servant
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The relationship is master-servant, not partnership, because there is no mutual agency. Y works for wages and doesn't share profits or risks. In partnership, each partner must act as agent of others and share profits/losses, which is absent here.

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