A major weakness of a partnership is
A) access to capital markets.
B) low organizational costs.
C) limited liability.
D) difficulty liquidating or transferring ownership.

Question

Quizplus · Accepted Answer

Difficulty liquidating or transferring ownership is a major weakness of a partnership because the partnership does not have a separate legal existence from the partners themselves. This means that if a partner wants to sell their ownership stake or leave the partnership, significant legal and financial issues may arise. Additionally, the partnership may have difficulty attracting new partners or investors because of these issues.

A Major Weakness of a Partnership Is