The disadvantages associated with a proprietorship are similar to those under a partnership.One exception relates to the more formal nature of the partnership agreement and the commitment of all partners' personal assets.As a result, partnerships do not have difficulty raising large amounts of capital.

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This statement is incorrect. Proprietorships and partnerships both have difficulty raising large amounts of capital because they rely on the personal assets of the owner or partners. However, partnerships may have a more formal agreement in place which can provide more commitment and structure for the business.

The Disadvantages Associated with a Proprietorship Are Similar to Those