Advanced Placement (AP), 05.10.2021 15:40 wolfiewolffromsketch
Jonathan owns and operates a successful sole proprietorship. A friend, who owns a similar business, suggests that they combine their businesses and form a new partnership. Which of the following should Jonathan consider before making a decision?
a. When Jonathan and his friend pool their resources, the business will likely grow faster than it otherwise would; however, the significant regulatory burden of operating a partnership would be far greater than that of a sole proprietorship.
b. Jonathan will gain more control over decision-making by partnering with his friend; however, the significant regulatory burden of operating a partnership would be far greater than that of a sole proprietorship.
c. When Jonathan and his friend pool their resources, the business will likely grow faster than it otherwise would; however, Jonathan will lose some of the control over decision-making that he currently enjoys.
d. When Jonathan and his friend pool their resources, they will each gain some control over the decision-making process; however, the new business will likely grow slower than the sole proprietorship.
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