Future Business Leaders of America (FBLA) Agribusiness Practice Test

Which is a key benefit of a partnership compared to a sole proprietorship?

1. Greater decision-making power for one individual

2. Sharing of resources and skills among partners

3. Limited liability for all partners

4. No additional formalities required

The correct answer is: Sharing of resources and skills among partners

The sharing of resources and skills among partners is a key benefit of a partnership when compared to a sole proprietorship. In a partnership, multiple individuals come together to contribute their unique strengths, experiences, and resources. This collaboration allows for a broader range of skills and expertise that can enhance business operations, innovation, and decision-making capabilities. In contrast, a sole proprietorship is solely dependent on one individual, which can limit the variety of knowledge and resources available to the business. The interconnectedness of partners can also lead to increased creativity and problem-solving abilities since multiple perspectives are considered. This aspect of partnerships not only facilitates pooling of financial resources to invest in the business but also enables partners to leverage each other’s strengths, creating a more robust foundation for the enterprise.