Unit Test — Unit test

Question 4 • TX-Money Matters A

Which can be considered disadvantages of sole proprietorships and partnerships?

Answer

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

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

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

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

Explanation

A sole proprietor runs the business alone, so one person may have to handle many responsibilities. In a partnership, decisions may require input or agreement from multiple partners, which can slow decision-making. These are disadvantages described by choice D.

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