Which of the Following Is an Advantage of a Partnership

question 32

Multiple Choice

Which of the following is an advantage of a partnership over a sole proprietorship?

• A) the potential to successfully achieve management by consensus
• B) the potential of each partner to devote significant attention to the business
• C) the potential to share all profits as partners see fit
• D) the potential for a stronger management base

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Definitions:

Depreciation

The method of allocating the cost of a tangible asset over its useful life.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, following major financial scandals.

Financial Reports

Documents that detail the financial health and performance of a business, including balance sheets, income statements, and cash flow statements.

Rent Expired

The portion of the rental period that has elapsed or the cost of rent that has been used up over a specific accounting period.