When Comparing General Partnerships to Sole Proprietorships, an Advantage of Partnerships

question 258

Multiple Choice

When comparing general partnerships to sole proprietorships, an advantage of partnerships is that they

• A) are less risky, because each partner is responsible for only a specified fraction of the firm's debts.
• B) are easier to terminate.
• C) cost less to organize.
• D) give the firm a stronger financial foundation.

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