Question

Because of the unlimited liability of all partners, a general partnership most
closely resembles which other business type?
A. Board of directors
B. Public corporation
C. Limited partnership
*D. Sole proprietorship

Answer 1

Answer:

D. Sole proprietorship

Explanation:

A Sole proprietorship is also referred to as the sole trader. It is the simplest form of business ownership. The business is owned and managed by one person.

Legally, the sole proprietorship is not an independent entity. It means that the business owner is fully liable to the debts and obligations of the business.