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

Question

Quizplus · Accepted Answer

A partnership has unlimited liability for its partners, which means that they are personally liable for the debts and obligations of the partnership. This distinguishes it from a corporation, which is a legal organization separate from its owners, and has limited liability for its shareholders. A sole proprietorship is a business owned by a single individual, and a written agreement is not required for a partnership to be legal.

A Partnership