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 is incorrect. The disadvantages associated with a proprietorship are not similar to those under a partnership. Proprietorships have unlimited liability and limited ability to raise capital, whereas partnerships have shared liability and can raise more capital due to the commitment of all partners' personal assets.

Disadvantages Associated with a Proprietorship Are Similar to Those Under