The correct answer is A. Partnerships are at an advantage over a sole proprietorship in terms of raising money. While a sole proprietorship only has the money from the proprietor, a partnership has money from all of the partners.
Which of the following is an advantage of corporations over sole?
There are several advantages to becoming a corporation, including the limited personal liability, easy transfer of ownership, business continuity, better access to capital and (depending on the corporation structure) occasional tax benefits.
What are the advantages of a company over a partnership?
The benefits of being a limited company over partnership include flexible taxation and limited liability protections for company owners. Partnerships, on the other hand, are very easy to establish and don’t require as many formalities as limited companies.
Which of the following is an advantage of a corporation over a sole proprietorship or partnership?
Advantages: Stockholders are not liable for corporate debts. This is the most important attribute of a corporation. In a sole proprietorship and partnership, the owners are personally responsible for the debts of the business.
Which of the following is an advantage of a sole?
4 advantages of a sole proprietorship
Sole proprietorships are easy to establish and get started. The owner retains complete control of the business. There are no corporate income tax payments. They are less expensive than other business types.
Which of the following is not an advantage of a sole proprietorship?
Answer and Explanation: Unlimited liability (option a) is not an advantage of a proprietorship. Unlimited liability is an undesirable feature for a proprietorship because it means that the owner of the enterprise is personally responsible for all debts.
Which of the following is a disadvantage of partnership but not a sole proprietorship?
Unlimited Liability and the Partnership
A major problem with partnerships, as with sole proprietorships, is unlimited liability: in this case, each partner is personally liable not only for his or her own actions but also for the actions of all the partners.
What are 3 advantages of a partnership?
Some of the advantages of partnership include the chance to bridge the gap in expertise and knowledge, the potential for more cash, a reduction in costs, more business opportunities, a better work-life balance, moral support, a new perspective, and potential tax benefits.
What are the advantages of sole proprietorship?
Advantages of sole trading include that:
- you’re the boss.
- you keep all the profits.
- start-up costs are low.
- you have maximum privacy.
- establishing and operating your business is simple.
- it’s easy to change your legal structure later if circumstances change you can easily wind up your business.
Which of the following partnership characteristics is an advantage?
Answer and Explanation: The correct choice is E. Ease of organization.
What is one major advantage of a partnership compared to a corporation?
Another benefit of general partnerships is their simplicity and flexibility. General partnerships are usually less expensive to form and require less paperwork and formalities than corporations, limited partnerships, or limited liability partnerships.
Which of the following is not an advantage of a corporation over sole proprietorships and partnerships?
The correct option is (d).
Corporations are required to pay tax on the earnings and then its shareholder is required to pay tax on the received dividends that is how they would be subjected to double taxation and hence it becomes a disadvantage of forming a corporation.
Which best describes the difference between sole proprietorships and partnerships?
Which best describes the difference between sole proprietorships and partnerships? Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.
Which of the following is an advantage of sole proprietorship Mcq?
Answer: (c) partnership. Which of the following is an advantage of a sole proprietorship? (a) ease of starting a business.
Which of the following is an advantage of a sole proprietorship class 11?
*ease of starting a business. being your own boss. pride of ownership. all of the above.
What is the main advantage of a general partnership?
General partnerships allow you to negotiate the terms relating to allocation of profits and losses, management operations and transfers of interests. This means that you can decide who works on which aspects of the business, and can decide on mutually beneficial structures, salaries, payments, and more.
Which of the following is NOT advantage of a partnership?
Disadvantages of a partnership include that: the liability of the partners for the debts of the business is unlimited. each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts.
What is partnership and advantage & disadvantage?
Comparison Table for Advantages and Disadvantages of Partnership
| Advantages | Disadvantages |
|---|---|
| A partnership business is very flexible since it is free of government control. | Since the consent of all partners is needed, quick decision-making is not possible in partnership. |
Which of the following is not an advantage of a sole proprietorship limited liability single taxation ease of setup more regulations no separation of ownership and control?
Correct answer: Option C) Unlimited liability.
Which of the following is the biggest difference between a sole proprietorship and a partnership?
The most important difference is that in sole proprietorships, only one person owns the business, while in partnerships, the owners can be two or more people. This means that sole proprietors have full control over their business, while partners must share control with others.
Which of the following is a disadvantage of sole proprietorships and partnerships?
Unlimited liability
Among one of the biggest disadvantages of a sole proprietorship is unlimited liability. This liability not only spans the business but the business owner’s personal assets.