Two key limitations of the proprietorship form of business involve potential difficulty in raising needed capital and the presence of unlimited personal liability for business debts.

Question

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Proprietorships are limited to the personal resources of the owner for raising capital, making it difficult to secure large amounts of funding. Additionally, the owner of a proprietorship is personally responsible for all of the business's debts and liabilities, risking personal financial ruin if the business fails.

Two Key Limitations of the Proprietorship Form of Business Involve