Multiple Choice
One advantage of a partnership over a sole proprietorship is that a partnership:
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1. Introduction to Accounting
Business Organization
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Which of the following is NOT a type of business ownership?
A
Partnership
B
Sole proprietorship
C
Inventory
D
Corporation
Verified step by step guidance1
Step 1: Understand the concept of business ownership. Business ownership refers to the legal structure under which a business operates. Common types include sole proprietorship, partnership, and corporation.
Step 2: Review the definitions of the listed options: Sole proprietorship is a business owned and operated by one individual. Partnership involves two or more individuals sharing ownership. Corporation is a legal entity separate from its owners, offering limited liability.
Step 3: Identify the term 'Inventory' in the list. Inventory refers to goods or materials a business holds for sale or production, and it is classified as an asset, not a type of business ownership.
Step 4: Compare 'Inventory' with the other options. Unlike sole proprietorship, partnership, and corporation, inventory does not describe a legal structure for owning and operating a business.
Step 5: Conclude that 'Inventory' is not a type of business ownership, as it is unrelated to the legal structure of a business.
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