Asked by
Boipelo Moiloa
on Dec 08, 2024Verified
Which of the following is a disadvantage of partnerships over sole proprietorships?
A) Unlike sole proprietorships,partnerships do not face any regulatory controls that affect their activities.
B) In partnerships,all owners have unlimited liability,whereas in sole proprietorships they have limited liability.
C) In partnerships,profits have to be shared,whereas in sole proprietorships all profits belong exclusively to the owner.
D) In sole proprietorships,the owners have access to more funds than in partnerships.
E) Unlike a sole proprietorship,a partnership is terminated when a partner dies or withdraws.
Regulatory Controls
Legal or governmental standards and rules established to control how businesses operate, often for the sake of public interest.
Sole Proprietorships
Sole Proprietorships are business entities owned and operated by one individual, where there is no legal distinction between the owner and the business entity.
- Determine the benefits and drawbacks of sole proprietorships.
- Grasp the nuances of funding and financial responsibilities within partnerships compared to sole proprietorships.
Verified Answer
SM
Learning Objectives
- Determine the benefits and drawbacks of sole proprietorships.
- Grasp the nuances of funding and financial responsibilities within partnerships compared to sole proprietorships.
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