One difference between partnerships and sole proprietorships is that partnerships:
A)Take less work to form.
B)Are managed by an elected board of directors.
C)Have the advantage of limited liability.
D)Have a greater chance of long term survival due to the accountability of each partner to the other.

Question

Quizplus · Accepted Answer

Partnerships have the advantage of each partner being accountable to the other, leading to better decision making and a greater chance of long term survival. Sole proprietorships lack this accountability as there is only one owner. Choices A and B are incorrect as partnerships can take more work to form and are managed by the partners themselves, not an elected board of directors. Choice C is also incorrect as partnerships do not have the advantage of limited liability, unlike corporations.

One Difference Between Partnerships and Sole Proprietorships Is That Partnerships