Everything else equal, including firm size, dollar sales, type of product sold, and so forth, the primary difference between 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 is generally 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)many more businesses are formed as partnerships than proprietorships

Question

Everything else equal, including firm size, dollar sales, type of product sold, and so forth, the primary difference between 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 is generally 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)many more businesses are formed as partnerships than proprietorships

Quizplus · Accepted Answer

The main difference between a proprietorship and partnership is that a partnership has more than one owner, while a proprietorship is owned by only one person. All other factors, such as size and type of business, can be equal between the two forms.

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