Question

part 1: main idea
which of the following is an advantage of partnership but not of sole proprietorship?
few regulations
easy to open and close
specialization of skills
limited life
8
multiple choice 4 points
part 1: main idea
which of the following is a disadvantage of partnership but not of sole proprietorship?
unlimited liability
potential for conflict
limited life
much stricter regulations

Explanation:

• For the first question:
• In a sole - proprietorship, there is only one owner, so there is no opportunity for specialization of skills among multiple owners. In a partnership, with multiple partners, each can bring their own specialized skills.
• Both sole - proprietorship and partnership usually have few regulations (compared to corporations), are easy to open and close (compared to corporations), and a partnership has a limited life (similar to some aspects of a sole - proprietorship's dependence on the owner).
• For the second question:
• In a sole - proprietorship, there is only one owner, so there is no potential for conflict among multiple owners as in a partnership.
• Both sole - proprietorship and partnership have unlimited liability (in a general partnership and sole - proprietorship), a limited life (for a partnership when a partner leaves or dies and for a sole - proprietorship when the owner leaves or dies in some cases), and they usually do not have much stricter regulations compared to corporations.

Answer:

First question: C. specialization of skills
Second question: B. potential for conflict