Comparing Proprietorships with Partnerships, Which Is TRUE

question 335

Multiple Choice

Comparing proprietorships with partnerships, which is TRUE?

• A) In both cases, profits are taxed only once.
• B) Partnerships outnumber proprietorships 2-to-1 in the United States.
• C) Proprietorships generally end with the death of the owner, but partnerships continue as long as at least one partner survives.
• D) A proprietor faces unlimited liability for her firm's debts, but in a partnership each partner is only responsible for an even share of the firm's indebtedness.

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Definitions:

Medium

A substance or material that something is transmitted through, especially in the context of communications or media.

Floppy Disk

A type of disk storage composed of a disk of thin and flexible magnetic storage medium enclosed in a square or rectangular plastic shell, now largely obsolete.

Platter

A rigid, flat surface in a hard disk drive where data is magnetically stored.

Spindle

A rotating axis of a machine, which tools or workpieces attach to for machining purposes.