A Major Weakness of a Partnership Is ________

question 3

Multiple Choice

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

---

Definitions:

Fiduciary Duty

An obligation to act in the best interest of another party, emphasizing trust, honesty, and loyalty.

Real-Estate Agent

A licensed professional who arranges real estate transactions, putting buyers and sellers together and acting as their representative in negotiations.

Commission

A fee or percentage of a sale paid to an employee or agent for their services in facilitating the sale.

Principals

In a legal context, individuals or entities who authorize agents to act on their behalf in contractual or negotiation situations.