The disadvantages associated with a proprietorship are similar to those of a partnership. A major difference between these two forms of business organization is that a partnership requires a legal agreement that commits the partners' personal assets, which means that partnerships have little difficulty raising large amounts of capital (similar to corporations).

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The statement is incorrect. Proprietorships and partnerships both lack the legal protection of personal assets that corporations have, which makes it difficult to raise large amounts of capital. Proprietorships do not require a legal agreement between multiple parties, as they are solely owned and operated by one individual.

The Disadvantages Associated with a Proprietorship Are Similar to Those