Which can be considered disadvantages of sole proprietorships and partnerships?

a. Partnerships require many people to write a charter, while sole proprietorships require one person to write a charter.

b. Sole proprietorships require one person to know complicated tax laws, while partnerships require many people to know the rules.

c. Partnerships require one person to do many things, while sole proprietorships require many people to weigh in on decisions.

d. Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.

Question

Social Studies

Bowers

3 February, 07:05

Which can be considered disadvantages of sole proprietorships and partnerships?

a. Partnerships require many people to write a charter, while sole proprietorships require one person to write a charter.

b. Sole proprietorships require one person to know complicated tax laws, while partnerships require many people to know the rules.

c. Partnerships require one person to do many things, while sole proprietorships require many people to weigh in on decisions.

d. Sole proprietorships require one person to do many things, while partnerships require many people to weigh in on decisions.

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Answers (1)

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Kibbles · Answer 1

The correct answer to this question would be D.

Both the sole proprietorship and the partnership have its advantages and disadvantages. On the one hand in sole proprietorship you have the ultimate decision making power, but if the company is large you would have a problem in adressing all of the issues. On the other hand, partnership allows you to split the burden but it also means that more people have a say in the final matters regarding the company.