Question

The 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.

a. True
b. False

Answer 1

B

Step-by-step explanation:

A sole proprietorship is when only one person runs a business

characteristics of a sole proprietorship

1. Unlimited liability
2. Only one person owns the business
3. Limited sources of capital

Doesn't exist perpetually.

A partnership is when at least two people come together to form a business

Features of a partnership :

1. Unlimited liability

2. Limited sources of capital as they cannot raises funds in the capital market.