GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is a major advantage of a business that is a partnership rather than a sole proprietorship?
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The responsibility for the business is shared
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The business is easy to set up
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The partners are not responsible for business debts
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The business is easy to sell
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Explanation:
Detailed explanation-1: -One of the main advantages of a partnership business is the lack of formality compared with managing a limited company. The accounting process is generally simpler for partnerships than for limited companies.
Detailed explanation-2: -Each partner is responsible for pay tax on their share of the profits and for making the correct National Insurance Contributions. The advantages of a partnership are that there are very few formalities in setting it up. This means that there is generally less hassle and expense.
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