Question

Which of the following statements is false?


There are three types of partnerships.

A sole proprietorship is a type of limited partnership.

In a limited liability partnership, all partners are limited partners.

In a limited partnership, only one partner is required to be a general partner

Answer 1

The correct answer to this would be:

A.) A sole proprietorship is a type of limited partnership. This answer is false because a, sole proprietorship is a type of business that legally has no separate existence from its owner. The sole proprietor is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

(Which note: In this case it proves this answer is false because it is in a sense a self-run business) 


I hope this answer was able to clear away your question, have a fantastic day! :)

Answer 2

Answer:

  A sole proprietorship is a type of limited partnership.

Explanation:

  These types of enterprises are owned and run by one person and there is no legal distinction between the owner and the business entity. The sole trader receives all profits but has unrestricted responsibility for losses and debts.

  I hope this answer helps you.