Final answer:
The statement regarding Proprietors in a proprietary colony only collecting profits is false; they had significant responsibilities. Additionally, colonists objected to the utilization of tax money without their representation, which is true.
Step-by-step explanation:
The question addresses the responsibilities of Proprietors in a proprietary colony. The statement that Proprietors had no responsibilities except to collect profits is False. In a proprietary colony, Proprietors had the responsibility of organizing the colony, creating a government, recruiting settlers, and managing the colony's affairs. They were essentially the owners and governors of the colony and had duties much beyond simply collecting profits.
Moreover, the statement that the colonists did not necessarily object to the principle of taxation but rather how the tax money would be applied is True. Many colonists believed in the need for taxation, but they were concerned with the lack of representation in the decision-making process and how their tax money was being spent by the British government, leading to the catchphrase 'no taxation without representation'. This was a driving issue for the American Revolution.