Which of the following is an advantage of partnerships over sole proprietorships?
A. Partnerships generally have more money to invest in starting or expanding a business.
B. Partnerships involve less paperwork and fewer legal fees.
C. Partnerships establish a democratic system for making business decisions.
D. Partnerships protect their investors against business debts incurred by the managers.
A partnership has advantage over a sole proprietorship: It's relatively inexpensive to set up and subject to few government regulations. Partners pay personal income taxes on their share of profits; the partnership doesn't pay any special taxes.
