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When Comparing General Partnerships to Sole Proprietorships, an Advantage of Partnerships

Question 237

Multiple Choice

When comparing general partnerships to sole proprietorships, an advantage of partnerships is that they


A) are less risky, because each partner is responsible for only a specified fraction of the firm's debts.
B) are easier to terminate.
C) cost less to organize.
D) give the firm a stronger financial foundation.

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