Question

Sara wants to start her own business. She is not sure if she wants to be a sole proprietor or get a partner. She asks a financial adviser about the different ways in which she might finance her company. What would an adviser tell her is a disadvantage of getting a partner?


A) She is responsible for paying all shareholders.
Eliminate
B) She has to share all of the profits with the partner.
C) She has to go through a government application process.
D) She is responsible for all of the debts the business incurs.

Answer 1

Answer:

b

Explanation:

She has to share all of the profits with the partner but also the worries, taxes involved, all the responsibility.

Answer 2

Answer:

Option (B).

Explanation:

In the stated question sara wants to start her own business and also she is not sure she remains as a sole proprietor or to do that business in partnership. She is in dilemma and she asks a financial adviser about different ways of financing her company and the financial adviser tells her regarding the disadvantages of getting a partner in to the business is sara has to share all of the profits with the partner.

The disadvantage in this regard is this and henceforth it is not advisable for her to get into a partnership for the company and it was referred to be alone run her own company.