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 liquidity of each partner's investment is low in a general partnership because partners cannot easily sell their ownership shares without the consent of the other partners. This can make it difficult for partners to liquidate their investments or withdraw from the partnership. All of the other choices provide advantages of a general partnership, including tax benefits, access to more skills and abilities, ease of formation, and avoidance of double taxation.

Which of the Following Is NOT an Advantage of a General