Partnerships differ from proprietorships because partnerships

Question

Quizplus · Accepted Answer

Partnerships by definition consist of two or more partners who share the responsibilities of managing the firm, while proprietorships are owned and managed by a single individual. Therefore, option A is correct. Options B, C, and D are incorrect because partnerships and proprietorships may or may not require a written agreement, a state charter, or unlimited liability, depending on the specific circumstances of each case. Option E is incorrect because there is no general rule that says that partnerships generate fewer profits than proprietorships, since profitability depends on many factors such as the nature of the business, the skills of the partners, and the market conditions.

Partnerships Differ from Proprietorships Because Partnerships