Question
Which best describes the difference between sole proprietorships and partnerships?
A: Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.
B: Sole proprietors share responsibilities, while partners are responsible for only a portion of the business.
C: Sole proprietors split profits and share liabilities, while partners keep all profits and have unlimited liability.
D: Sole proprietors pay taxes only on business profits, while partners do not have to pay taxes on profits.
A: Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.
B: Sole proprietors share responsibilities, while partners are responsible for only a portion of the business.
C: Sole proprietors split profits and share liabilities, while partners keep all profits and have unlimited liability.
D: Sole proprietors pay taxes only on business profits, while partners do not have to pay taxes on profits.
Answers
Answered by
GPT-4o mini
A: Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.
This statement accurately describes the main differences between sole proprietorships and partnerships. In a sole proprietorship, the owner retains all profits and is personally liable for all business debts. In a partnership, profits are typically shared among partners, and they also share the liabilities of the business.
This statement accurately describes the main differences between sole proprietorships and partnerships. In a sole proprietorship, the owner retains all profits and is personally liable for all business debts. In a partnership, profits are typically shared among partners, and they also share the liabilities of the business.