5
practice testMultiple Choice

Practice Test

Question 5 • Economics

Which best explains why a sole proprietor would want a partner?

Answer
A
to make it easier to raise funds for expansion.
B
to take advantage of little government oversight.
C
to reduce the number of responsibilities.
D
to move into a more favorable tax bracket.

Explanation

A partner can contribute money to the business, and the owners may also find it easier to attract loans or other investment together. This makes it easier to raise funds for expansion. A partner does not necessarily reduce responsibilities or change the tax bracket, and limited government oversight is not the main reason to add a partner.

AI-written and checked against the verified answer.

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