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.

Question

Quizplus · Accepted Answer

The statement incorrectly asserts that partnerships do not have difficulty raising large amounts of capital, which is not necessarily true. Partnerships still face limitations on their ability to raise capital compared to larger corporations with access to public markets and institutional investors.

The Disadvantages Associated with a Proprietorship Are Similar to Those