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 establish a democratic system for making business

decisions.

C. Partnerships protect their investors against business debts

incurred by the managers.

D. Partnerships involve less paperwork and fewer legal fees.

The correct answer is A.

Partnerships are at an advantage over a sole proprietorship in terms of raising money. While a sole proprietorship only has the money from the proprietor, a partnership has money from all of the partners.

Partnerships generally have more money to invest in starting or expanding a business. (A)

Explanation:

Partnership is a type of business that involves more than one business owner/investor for the smooth running and operation of the business. while a sole proprietorship is also known as a one-man business that involves just a single business owner/investor.

partnerships have some advantages over sole proprietorship type of business because in partnership there is a larger pool of funds because each partner contributes to the running of the business financially and this in turn reduces the effect of loses been incurred on an investor because the losses are been shared across the investors as well. partnership business last longer in the event of death or other circumstances than a sole proprietorship type of business.