A major weakness of a partnership is ________.
A) the difficulty in maintaining owners' control
B) the difficulty in liquidating or transferring ownership
C) the double taxation of income
D) its high organizational costs

Question

Quizplus · Accepted Answer

The difficulty in liquidating or transferring ownership is a major weakness of a partnership, as partners can only transfer their ownership interest with the consent of all other partners. This can make it challenging for a partner to exit or for new partners to be added, potentially limiting the growth and flexibility of the business. The other options listed are weaknesses of other business structures - A is a weakness of a corporation, C is a weakness of a C-corporation, and D is not necessarily a weakness of partnerships (as they generally have lower organizational costs than corporations).

A Major Weakness of a Partnership Is ________