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

Question

Quizplus · Accepted Answer

The statement is incorrect. It incorrectly states that partnerships don't have difficulty raising large amounts of capital, when in fact, they may also face limitations in raising significant capital due to the personal liability of the partners.

The Disadvantages Associated with a Proprietorship Are Similar to Those