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.