Compared to the Sole Trader,the Advantage of the Partnership Form

question 34

Multiple Choice

Compared to the sole trader,the advantage of the partnership form of business is:

• A)mutual agency
• B)limited life
• C)easy to set up
• D)greater access to skills and resources

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, capable of owning assets, incurring liabilities, and entering into contracts.

Capital Markets

Capital markets are venues where savings and investments are channeled between suppliers who have capital and those who are in need of capital.

Long-Term Debt

Debt that is due for repayment more than one year into the future.

Equity Securities

Financial assets representing ownership interest in a company, such as stocks, that provide voting rights and potential dividends.