An Advantage of a Partnership Compared to a Sole Proprietorship

question 60

Multiple Choice

An advantage of a partnership compared to a sole proprietorship is:

• A)mutual agency.
• B)sharing of profits.
• C)greater access to funds.
• D)Both B and C.

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Definitions:

Long-Term Investment

Investments that a company or individual holds for more than one year, typically including stocks, bonds, or real estate.

Parent

A company that holds a controlling interest in another company, making the other company its subsidiary.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which may differ significantly from its market value.

Debt Investments-HTM

Investments in debt securities that are held to maturity, meaning the investor plans to hold the securities until they are paid off at their maturity date.