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Comparing Proprietorships with Partnerships, Which Is TRUE

Question 103

Multiple Choice

Comparing proprietorships with partnerships, which is TRUE?


A) In both cases, profits are taxed only once.
B) Partnerships outnumber proprietorships 2-to-1 in the United States.
C) Proprietorships generally end with the death of the owner, but partnerships continue as long as at least one partner survives.
D) A proprietor faces unlimited liability for her firm's debts, but in a partnership each partner is only responsible for an even share of the firm's indebtedness.

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