With the more formal nature of the partnership agreement and the commitment of all partners' personal assets,partnerships have no difficulty raising large amounts of capital as do proprietorships.

Question

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Partnerships, while potentially having more resources than sole proprietorships due to the combined assets of all partners, still face significant challenges in raising large amounts of capital compared to corporations. This is because they do not have access to public markets to issue stocks or bonds, and the personal liability involved can deter investment.

With the More Formal Nature of the Partnership Agreement and the Commitment