Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 22 - No. 31)
In a partnership, what is the primary characteristic that distinguishes it from a sole proprietorship in terms of liability?
Shared profits and losses.
Unlimited liability of the partners.
Formal legal structure.
Complexity of accounting requirements.
Explanation
Partnerships typically have unlimited liability, meaning partners are personally liable for the debts of the business.
Comments (0)
