1. Which statements are true about partnerships?
Partnerships make it easy to raise large amounts of capital.
A partnership is easy to set up.
Partners have unlimited liability.
All profits from a partnership are passed through to the partners for paying taxes.
2. Which statements are true?
All profits from a sole proprietorship are passed through to the owner for paying taxes.
A sole proprietorship offers limited liability.
A sole proprietorship is easy to set up.
It is impossible to sell a part of your ownership stake in a sole proprietorship.
A sole proprietorship is subject to few government regulations.