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JAMB Economics 1986 Question 27

Question 27

Business Organisations

One of the advantages of a partnership over a sole proprietorship is that

  1. A.it is the most popular form of business organization
  2. B.the partner can easily withdraw from the business
  3. C.it makes an increase in the capital of the business possible
  4. D.there is no limit to the number of people who may bring in capital.
Show the answer and explanation

Answer: C (it makes an increase in the capital of the business possible)

Explanation

Several partners can each contribute money, so a partnership can raise more capital than one owner alone.