Which of the following is a disadvantage of partnerships?

In a partnership structure, one of the primary disadvantages is the concept of unlimited liability. This means that each partner is personally liable for the debts and obligations of the partnership. If the business fails or incurs debt, the partners' personal assets may be at risk to satisfy those debts. This contrasts with limited liability entities such as corporations, where owners are not personally liable for business debts beyond their investment in the company.

In partnerships, the lack of legal distinction between the business and the partners exposes individuals to significant financial risk, which can deter some prospective business owners. This aspect underscores the importance of trust and compatibility among partners since personal financial security is on the line when entering into a partnership arrangement.

The other options do not represent the same level of direct liability risk; for instance, limited liability and costly incorporation relate more to corporate structures, while publicly listed shares pertain to the capitalization method available to corporations, not partnerships. Thus, unlimited liability is indeed a major concern and disadvantage within a partnership.