D Question 2 Which of the following statements is correct? Corporate investors are exposed to unlimited liability. 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. The form of organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm's Owners Two disadvantages of a proprietorship are the relative difficulty of raising new capital and (2) the owner's limited personal liability for the business debts. Corporations generally face relay Which of the following statements is correct? Corporate investors are exposed to unlimited liability. 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. The form of organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm's OWCTS. Two disadvantages of a proprietorship are (1) the relative difficulty of raising new capital and (2) the owner's unlimited personal liability for the business debts. Corporations generally face relatively few regulations apronolock.com