Which best describes the difference between sole proprietorships and partnerships?

Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.

Sole proprietors share responsibilities, while partners are responsible for only a portion of the business.

Sole proprietors split profits and share liabilities, while partners keep all profits and have unlimited liability.

Sole proprietors pay taxes only on business profits, while partners do not have to pay taxes on profits.

Question

Social Studies

Brynlee Sherman

27 December, 18:21

Which best describes the difference between sole proprietorships and partnerships?

Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.

Sole proprietors share responsibilities, while partners are responsible for only a portion of the business.

Sole proprietors split profits and share liabilities, while partners keep all profits and have unlimited liability.

Sole proprietors pay taxes only on business profits, while partners do not have to pay taxes on profits.

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Answers (1)

Know the Answer?

Abby Allison · Answer 1

The correct answer is A - Sole proprietors keep all profits and have unlimited liability, while partners split profits and share liabilities.

A sole proprietorship is one person/family who owns a particular business, which means that all revenue belongs to them. On the other hand, in the case of a partnership, all partners have to share everything - revenue and liabilities because they own a portion of a business.