Differences between sole proprietorship and partnership?

Answer 1

Sole proprietorships are businesses that are owned by one person. There are numerous advantages to it including the power to make all the decisions, and not having to answer anyone. The owner also gets to keep all of the profits as opposed to splitting it up. the disadvantages include the owner being responsible in the case that the business loses money (there's unlimited liability) and there's no one to help out with the business.

Partnerships are businesses run by two or more people. Advantages include each partner providing funds to start the business, and jointly sharing the advantages and risks of business. Disadvantages are that the tasks, responsibilites, and expectations must be clearly defined between the partners, both partners assume liability for business failures (unlimited liability) and the fact that people don't always get along.

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