Question

Maurice has been operating his business as a sole proprietorship but decides that it is too much work for him to do alone. He does not want to file a lot of government forms, but would like to bring in someone to own and operate it with him. Maurice needs a ________.

Answer 1

partnership.

Step-by-step explanation:

The main advantages of a partnership are:

• it is very easy and simple to form
• it is not taxed directly, it passes through taxes to its owners (similar to a sloe proprietorship)
• more partners mean more capital and more talent

Its main disadvantage is the same main disadvantage of a sole proprietorship, unlimited liability, i.e. partners are responsible for all the debts and obligations of the partnership.