A difference between a proprietorship and a partnership is that

Question

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In a partnership, each partner can specialize in a particular aspect of the business, whereas in a proprietorship, the owner must handle all aspects of the business. Option A is incorrect as forming a partnership is not necessarily more difficult than forming a proprietorship. Option B is incorrect as partnerships can have more than two owners. Option D is incorrect as both proprietorships and partnerships are taxed similarly, with profits being taxed once.

A Difference Between a Proprietorship and a Partnership Is That