Paul Wants to Start a Business That Provides Canoe and Kayak

question 219

Multiple Choice

Paul wants to start a business that provides canoe and kayak trips.He decides that it would be better to ask his brother Tad to become his partner because

• A) one person could not possibly run this type of business.
• B) Paul will receive all of the profits from the partnership.
• C) together they will be able to get more capital and credit to start the business.
• D) the business will pay less taxes than it would as a sole proprietorship.
• E) there are generally fewer control issues in a partnership than in a sole proprietorship.

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