When comparing partnerships to sole proprietorships,an advantage of partnerships is that they:
A)cost less to organize.
B)limited liability for the general partner.
C)are easier to terminate.
D)give the firm a stronger financial foundation.

Question

Quizplus · Accepted Answer

Partnerships typically have more financial resources than sole proprietorships, as multiple partners can contribute capital and share expenses. This can give the firm a stronger financial foundation, which can be beneficial for growth and stability. While partnerships may be more complex to organize and terminate, the potential financial benefits can make them a more attractive option for certain businesses.

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