A Difference Between Partnerships and Sole Proprietorships Is That Partnerships

question 128

Multiple Choice

A difference between partnerships and sole proprietorships is that partnerships:

• A)are easier to form.
• B)are managed by an elected board of directors.
• C)have the advantage of limited liability.
• D)have a greater chance of long term survival.

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Definitions:

Monopoly Profits

Monopoly profits refer to the extra earnings a firm accrues by being the sole supplier of a good or service with no close substitutes, allowing it to dictate market prices.

Industry

A group of manufacturers or businesses that produce a particular kind of goods or services.

Barriers to Entry

Factors that prevent or hinder companies from entering a particular market or industry.

Gas Station

A commercial outlet that offers gasoline and motor oil for automobiles.