Question

Sara wants to start her own business. She is not sure if she wants to be a sole proprietor or get a partner. She asks a financial adviser about the different ways in which she might finance her company. What would an adviser tell her is a disadvantage of getting a partner?A) She is responsible for paying all shareholders.B) She has to share all of the profits with the partner.C) She has to go through a government application process.D) She is responsible for all of the debts the business incurs.

Answer 1

Answer:

B) She has to share all of the profits with the partner.

Explanation:

A partnership is a business owned by two or more parties while a sole proprietorship is owned by one person. In the former, decisions are made jointly and the process might take long since all partners must consent to it. Another disadvantage is that all profits are shared between or among all partners unlike a sole proprietorship where the owner takes all the profits.

Answer 2

Answer: B

Explanation: