Which of the Following Is an Advantage of a Partnership

question 6

Multiple Choice

Which of the following is an advantage of a partnership over a sole proprietorship?

• A) Transfer of ownership is easier.
• B) Liability is unlimited.
• C) Pooling of resources and skills
• D) Mutual agency.

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Definitions:

Production Facility

A place equipped for industrial production of goods or extraction of natural resources.

Negotiable

Refers to the quality of a document or instrument that allows it to be transferred or endorsed to another party, thus enabling the recipient to claim the rights specified in the document.

Authorized Agent

An individual or entity that has been given legal authorization to act on behalf of another person or entity in conducting business or legal affairs.

Drawer

The party that initiates a draft (writes a check, for example), thereby ordering the drawee to pay.