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

question 33

Multiple Choice

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

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