True or False: One reason for entering a partnership is to gain additional capital.

Entering a partnership can provide access to additional capital, which is one of the fundamental reasons individuals choose this business structure. When two or more people come together to form a partnership, they can pool their financial resources, which can significantly enhance the capacity for investment in business operations, growth, or expansion. This combined capital can allow the partnership to take on larger projects, purchase more inventory, or invest in marketing strategies that may not be feasible for a sole proprietor working with limited funds.

In a partnership, each partner may contribute not only money but also other resources, such as expertise or a customer base, which can add further strength to the capital foundation of the business. Therefore, stating that one reason for entering a partnership is to gain additional capital is true, as it highlights the collaborative advantage that partnerships offer in financial and operational capacities.