Which of the following is an advantage of partnerships over sole proprietorships?

A. Partnerships generally have more money to invest in starting or expanding a business.

B. Partnerships involve less paperwork and fewer legal fees.

C. Partnerships establish a democratic system for making business decisions.

D. Partnerships protect their investors against business debts incurred by the managers.

Question

Daniela

Geography

28 June, 21:04

Which of the following is an advantage of partnerships over sole proprietorships?

A. Partnerships generally have more money to invest in starting or expanding a business.

B. Partnerships involve less paperwork and fewer legal fees.

C. Partnerships establish a democratic system for making business decisions.

D. Partnerships protect their investors against business debts incurred by the managers.

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Answers (1)

Know the Answer?

Brisa Hendricks · Answer 1

a

Explanation:

A partnership has advantage over a sole proprietorship: It's relatively inexpensive to set up and subject to few government regulations. Partners pay personal income taxes on their share of profits; the partnership doesn't pay any special taxes.