A partnership:
A)Is also called a sole proprietorship.
B)Has unlimited liability for its partners.
C)Is legally required to have a written agreement.
D)Is a legal organization separate from its owners.
E)Has owners called shareholders.

Question

Quizplus · Accepted Answer

A partnership is a type of business organization in which two or more individuals own and manage the business together. Partners share in the profits and losses of the business and have unlimited liability for its debts and obligations. Unlike a corporation, a partnership is not legally required to have a written agreement, and it is not a separate legal entity from its owners (as in choice D). Finally, shareholders (as in choice E) are owners of a corporation, not a partnership.

A Partnership