Final answer:
The drawbacks of a proprietorship include difficulty in raising money, unlimited liability where the owner assumes full responsibility for debts and obligations, and the business's dependence on the owner's continued participation for its existence. The correct option is c.
Step-by-step explanation:
The drawback(s) of a proprietorship include several key factors that can pose significant challenges for a business owner. Firstly, being a sole proprietor often means it’s more difficult to raise money to establish or expand the business due to the reliance on personal credit or assets for financing. Secondly, a major concern is unlimited liability, where the proprietor assumes full personal responsibility for the debts and obligations of the company, potentially leading to the loss of personal assets in case of business failures or legal actions.
While the question mentions partnerships, it is important to note that the liabilities and challenges associated with partnerships differ from sole proprietorships. In a partnership, each partner is indeed responsible for the other's actions, and conflicts can arise, however, this does not pertain to a sole proprietorship which is owned and operated by one individual.
Lastly, the existence and continuity of sole proprietorships are closely tied to the owner. If the owner dies or chooses to leave the business, unlike a corporation, the business does not continue to exist independently. The ease of starting and the potential for retaining complete control are offset by these drawbacks.