Everything else equal, including firm size, dollar sales, type of product sold, and so forth, the primary difference between the proprietorship and partnership business forms is that
A)a partnership has more owners than a proprietorship.
B)the combined personal liability associated with a partnership is significantly less than the combined personal liability associated with a proprietorship.
C)a partnership generally is easier to form than a proprietorship.
D)the annual growth rate of a proprietorship is limited by law, whereas the growth rate of a partnership is always potentially unlimited.
E)there are many more businesses that are formed as partnerships than proprietorships.

Question

Quizplus · Accepted Answer

The primary difference between a proprietorship and a partnership is the number of owners involved. A proprietorship has only one owner, while a partnership has at least two owners.

Everything Else Equal, Including Firm Size, Dollar Sales, Type of Product