Which of the Following Is a Valid Difference Between Sole

Multiple Choice

Which of the following is a valid difference between sole proprietorship and partnership?

A) Partnerships require a written agreement while sole proprietorships do not.
B) Partnerships require a state charter while sole proprietorships do not.
C) Partnerships generate lower profits than sole proprietorships.
D) Partnerships are characterized by unlimited liability, while sole proprietorships are not.
E) Partnerships consist of two or more partners sharing the responsibility of the firm, while sole proprietorship consists of a single individual.