Final answer:
The statement about the Articles of Incorporation is true as they establish a legal entity for managing community property and assets. Conversely, the claim that Proprietors in a proprietary colony had no responsibilities other than collecting profits is false, as they had governance roles too.
Step-by-step explanation:
Articles of Incorporation formally establish a legal entity that is responsible for the maintenance, management, and operation of community property and its assets. Therefore, the statement "The Articles of Incorporation formally establish an entity that is responsible for the maintenance, management, and operation of the community property and its assets" is true.
In contrast, in a proprietary colony, the statement that Proprietors have no responsibilities except to collect the profits is false. Proprietors of a proprietary colony had various duties beyond merely collecting profits; they were also responsible for the governance and administration of the colony.
Incorporation gave entrepreneurs the ability to limit their financial and legal liabilities compared to sole proprietorships and partnerships. It allowed shareholders to invest money in a company and partake in its profits while being protected from the full extent of financial loss or legal issues the company might encounter. This separation between business and personal liability is a core characteristic of corporate entities.