Which of the following describes an advantage of forming a partnership over a sole proprietorship?

• A. Access to more capital
• B. Shared liability
• C. Access to more capital and pooled resources
• D. Potential for disagreements

Answer: (C)

When multiple owners join forces, a partnership can access more capital and a broader set of resources than a single owner could. Each partner can contribute funds, and the combined capital, creditworthiness, and borrowing power of several owners make it easier to raise funds for bigger projects. Beyond cash, partners bring pooled resources—equipment, facilities, networks, and diverse skills—that can be shared to run and grow the business more effectively. This mix of greater funding and jointly available assets enables larger operations and faster growth. In contrast, a sole proprietorship relies on one owner’s resources, which limits both financing and available assets. The other factors listed—sharing liability or the potential for disagreements—are more about drawbacks or risks, not the main advantage.