Sole Proprietorship vs General Partnership Quiz

• It involves two or more individuals who agree to share the profits, losses, and responsibilities of a business.
• The owner has limited liability for the business's debts and obligations.
• The owner has unlimited liability for the business's debts and obligations. (correct)
• It is the most complex form of business entity.

• A general partnership is the simplest form of business entity where an individual operates and owns the business.
• The owners of a sole proprietorship have unlimited liability for the business's debts and obligations, while each partner in a general partnership also has unlimited liability. (correct)
• A sole proprietorship is a legal entity, while a general partnership is not.
• A sole proprietorship involves two or more individuals who agree to share the profits, losses, and responsibilities of a business.

• It involves two or more individuals who agree to share the profits, losses, and responsibilities of a business.
• The owner has unlimited liability for the business's debts and obligations. (correct)
• It is the most complex form of business entity.
• The owner has limited liability for the business's debts and obligations.