Partnerships may have more ability to raise equity finance than sole proprietorships, as partnerships tend to have more people to contribute funds, but limited companies have a wider range of equity options than partnerships.

Question

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Partnerships can raise more equity finance than sole proprietorships due to the contribution of funds from multiple partners. However, limited companies have more options to raise equity finance, such as issuing shares on stock exchanges or private placements.

Partnerships May Have More Ability to Raise Equity Finance Than