What distinguishes partnerships from sole proprietorships?

Question

Quizplus · Accepted Answer

The distinguishing feature of partnerships from sole proprietorships is mutual agency, where each partner can act for the other partners. This is not present in sole proprietorships, where the owner is solely responsible for all decisions and actions. The extent of liability for the debts of the business and the amount of income tax the entity has to pay are characteristics shared by both sole proprietorships and partnerships. Involvement in day-to-day business activities by owners can also occur in both types of entities.

What Distinguishes Partnerships from Sole Proprietorships