Which form of business organization has a basic weakness of reaching araising capital limit?
A)proprietorship
B)partnership
C)limited partnership
D)all of the above

Question

Quizplus · Accepted Answer

All of the given forms of business organizations have a basic weakness of reaching a raising capital limit. In proprietorship, the funds are limited to the personal savings and borrowing capacity of the owner. In partnership, the ability to raise capital is limited by the number of partners and their individual contribution capacity. In the case of a limited partnership, the liability of the limited partner is limited, but so is their ability to contribute to the capital. Hence, all these forms of business organizations face limitations in raising capital.

Which Form of Business Organization Has a Basic Weakness of Reaching