Compared to a Sole Proprietorship, What Would Be a Major

question 145

Multiple Choice

Compared to a sole proprietorship, what would be a major advantage of a general partnership?

• A) It is considered to be a permanent business organization.
• B) It would be able to completely avoid the problem associated with unlimited liability.
• C) It would be able to take advantage of complementary skills and shared workload.
• D) It is easier and less expensive to form.

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Definitions:

Finance Department

The division within an organization responsible for managing its financial activities, including planning budgets, tracking cash flow, and analyzing financial statements.

Large Corporation

A significantly sized company typically characterized by vast operations, substantial revenues, and a large number of employees.

Financial Asset

An intangible asset representing a legal claim to future payment, such as stocks, bonds, or bank deposits.

Security

A financial asset. Commonly a stock or a bond. An asset pledged to guarantee the repayment of a loan.