Which of the following is not an advantage of a general partnership?
A) Business losses can be deducted against the partners' other sources of income.
B) The skills and abilities of more than one individual are available to the firm.
C) The liquidity of each partner's investment is low.
D) Creating one is relatively easy and inexpensive compared to a c corporation or limited liability company.
E) It is not subject to double taxation.

Question

Quizplus · Accepted Answer

The partners' liquidity is low because they have a shared ownership interest in the firm and cannot easily sell their individual shares without the agreement of the other partners. This is a disadvantage of a general partnership, not an advantage. The other choices listed are advantages of a general partnership.

Which of the Following Is Not an Advantage of a General