Dissolving a partnership is easier than dissolving a sole proprietorship.Question 9Answera.Falseb.True

Question Analysis

The statement posits that dissolving a partnership is easier than dissolving a sole proprietorship. To evaluate this statement, we need to consider the legal and operational aspects of dissolving both business structures.

Relevant Concepts

1. Sole Proprietorship: This is a business owned by a single individual. Dissolving it generally involves stopping business operations, settling any debts and obligations, and canceling any registrations/licenses.
2. Partnership: This involves two or more individuals. Dissolving a partnership can be more complex due to the need for mutual agreement among partners, settling partnership debts, and distributing assets.

Analysis and Detail

1. Dissolving a Sole Proprietorship:

   • Requires minimal paperwork.
   • The owner simply ceases operations.
   • Any debts need to be settled, which may involve personal finances.

2. Dissolving a Partnership:

   • Requires agreement from all partners, which can complicate the process.
   • Partnerships may have to follow specific terms laid out in a partnership agreement.
   • More legal considerations, such as the distribution of assets and liabilities among partners.

Verify and Summarize

While both types of business structures can be dissolved, the process of dissolving a partnership typically involves more steps and requires the agreement of multiple parties, making it generally more complex than dissolving a sole proprietorship.

Final Answer

Answer: a. False (Dissolving a sole proprietorship is generally easier than dissolving a partnership.)