Compared to a sole proprietorship,which of the following is considered an advantage of a general partnership?
A)More financial resources.
B)Limited liability for all owners.
C)Equal division of profits among the owners.
D)Ease and flexibility in transferring shares of ownership to others.

Question

Quizplus · Accepted Answer

A general partnership has the advantage of more financial resources than a sole proprietorship because it has multiple owners who can contribute capital and share the financial burden. This can lead to greater stability and growth potential for the business. However, a general partnership does not provide limited liability for all owners (as in a limited partnership or corporation), does not necessarily have an equal division of profits among owners, and may not have ease or flexibility in transferring shares of ownership.

Compared to a Sole Proprietorship,which of the Following Is Considered