Compare and contrast sole proprietorships and general partnerships
What will be an ideal response?
Answer: A sole proprietorship has only one owner and the owner has complete control over the business. A general partnership must have at least two owners. Each partner is entitled to equal control unless agreement specifies otherwise. Profits are taxed at individual levels in both structures. The owner is responsible for only his mistakes and he has unlimited liability in a sole proprietorship. In a partnership, all partners have unlimited liability. This means that their personal assets are at risk to mistakes made by other partners.
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