When comparing a partnership to a sole proprietorship, which of the following statements is likely to be true of a partnership?

A. Only one person has decision-making authority.
B. It faces greater challenges in hiring and retaining staff.
C. It benefits from a more diverse set of skills and expertise.
D. Owners have no risk of liability.

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Ca10192006idn Ca10192006idn

05-08-2024
Business

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When comparing a partnership to a sole proprietorship, which of the following statements is likely to be true of a partnership?

A. Only one person has decision-making authority.
B. It faces greater challenges in hiring and retaining staff.
C. It benefits from a more diverse set of skills and expertise.
D. Owners have no risk of liability.

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-08-05T09:59:29-04:00

Final answer:

Partnerships benefit from a diverse skill set, share decision-making authority, and have advantages in attracting investors and hiring employees.

Explanation:

Partnerships are likely to benefit from a more diverse set of skills and expertise compared to sole proprietorships, as they involve two or more individuals who share profits and responsibilities equally. In a partnership, decision-making authority is typically shared among the partners, allowing for a collaborative approach to running the business. Additionally, partnerships can attract investors more easily and may be able to hire a larger workforce to support business operations.

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