- 1 Marks
Question
A fundamental ground upon which a partnership is distinct from a sole-proprietorship is
A. Authorised share capital
B. Financial accounts
C. Asset turnout
D. Debt recovery procedure
E. Legal minimum of membership
Answer
Answer: E. Legal minimum of membership
Explanation:
A key distinction between a partnership and a sole proprietorship is the legal minimum of members. While a sole proprietorship consists of a single individual, a partnership requires at least two people. Other factors such as authorized share capital, asset turnout, and financial accounts may apply to different entities but do not form a fundamental distinction between these two forms of business organization.
- Tags: Legal Membership, Partnership Law, Sole Proprietorship
- Level: Level 1
- Topic: Partnership Law
- Series: MAY 2022
- Uploader: Kwame Aikins