Articles of partnership establish

how businesses can raise capital.
what business taxes are paid.
how profits and losses are divided.
what is included in a charter.

which best explains why a sole proprietor would want a partner?

to reduce the number of responsibilities
to make it easier to raise funds for expansion
to move into a more favorable tax bracket.
to take advantage of little government oversight.

Question 1

The correct answer is: "establish how profits and losses are divided.".

Articles of partnership is the denomination of the contract between two parties that establishes the manner in which they agree how to put together their capital, labor and skills to start a joint business, including the responsibilities beared by each party in relation to profits and losses.

Question 2

The correct answer is:  to reduce the number of responsibilities

A sole propietor bears an unlimited reponsibility for the potential losses of the company owned. He is obliged to account for them even with his private patrimony, if necessary. Therefore it is likely that he might seek a partner in order to reduce his own risk.

your answer would be 12 stories

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