Compared to a Proprietorship, an Advantage of a Partnership Is

question 6

Multiple Choice

Compared to a proprietorship, an advantage of a partnership is

• A) that profits are not taxed twice.
• B) double taxation.
• C) the ability to take advantage of greater specialization.
• D) the limited liability of the partners.

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Definitions:

Sales Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Operating Expenses

Recurring expenses incurred during normal business operations, such as rent, utilities, and payroll.

Long-Lived Asset

A type of tangible or intangible asset that is used in operations and is expected to provide economic benefits for several accounting periods.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset over time.