Compared to a sole proprietorship, which of the following is considered an advantage of a general partnership?
A)ability to pool financial resources
B) unlimited liability for all owners
C) division of profits among owners
D)ease and flexibility in transferring shares of ownership to others

Question

Quizplus · Accepted Answer

In a general partnership, all partners can pool their financial resources which can provide a greater amount of capital to work with. This can help the business grow and expand more quickly than a sole proprietorship, where the owner has limited financial resources. Choices B, C, and D are incorrect because a general partnership also has unlimited liability for all owners, profits are divided among owners in both structures, and transferring ownership may not necessarily be easy or flexible depending on the partnership agreement.

Compared to a Sole Proprietorship, Which of the Following Is