Question

Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?

Answer 1

Partnerships find it easier to raise capital so are likely to seem much more financially stable in the eyes of banks or other lenders.

For the same kind of reason, employee turnover will be lower in a business that is run as a partnership as it will appear bigger and give the impression that jobs are secure. Sole traders are usually shorter on capital and tend to be smaller businesses so may not be able to offer as many benefits.

Hope this helps

Answer 2

B: A partnership has more stability and access to more assets.