
Concept Introduction:
The form of a business indicates its legal status and identification. Some forms of a business are proprietorship,
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.
Want to see more full solutions like this?
Chapter 15 Solutions
ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENTPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
