Concept Introduction:
The form of a business indicates its legal status and identification. Some forms of a business are proprietorship, partnership, and corporation. Each form of the business has different characteristics and form of business used as per the need of the business.
To indicate:why partnership form of business is preferred over the corporate or sole proprietorship forms.
Explanation of Solution
A partnership is a form of the business in which two or more persons join the business as partners. Hence a partnership form allows adding more than one business owner’s unlike in proprietor ship which does allow adding partners in the business.
Although a corporate form of business allows adding more than one business owners but it imposes several legal formlaltiies on the business which is a hectic task for small and medium level businesses. Hence partnership is preferred over the corporate or sole proprietorship forms as it provide benefits of both forms of the businesses.
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Chapter 15 Solutions
ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
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