What is the primary advantage of a General Partnership compared to a Sole Proprietorship?

The primary advantage of a General Partnership compared to a Sole Proprietorship lies in the fact that more than one person is responsible for financial backing. In a General Partnership, two or more individuals come together to operate a business, which allows them to pool their resources, skills, and expertise. This shared responsibility can significantly enhance the business's financial capacity since multiple partners can contribute capital, share expenses, and leverage their networks for support.

In contrast, a Sole Proprietorship relies entirely on one individual for all aspects of the business, including financial backing. This individual assumes all the financial risks and responsibilities, limiting growth potential based on their own resources. The collaborative nature of a partnership can lead to a more robust and sustainable business model, especially when it comes to managing financial obligations and securing loans or investments.