A Few Years Back,your Three U

question 318

Multiple Choice

A few years back,your three U.S.born friends that live in the State of Wyoming inherited a dude ranch that they plan to turn into a retirement haven for race horses.Peaceful Pastures wants to open its doors by spring,2011.After attending several small business seminars,the three friends are certain they need limited liability.The high-risk,labor-intensive business will require a sizeable investment including an air-conditioned barn,several fenced-in pastures and loads of animal feed.You recently heard that one form of business ownership requires owners to pay self-employment taxes on the entire amount of earnings.You are fairly certain this is one tax loophole your friends would like to avoid.You recommend:

• A)Sole Proprietorship
• B)General Partnership
• C)Limited Liability Company
• D)S-Corporation

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Definitions:

Task Behaviors

Activities and actions taken by leaders to help a group achieve its objective.

Process Behaviors

The actions leaders take to ensure that a team's work processes are effective, efficient, and continuously improved.

Directing Behaviors

Actions by a leader that provide guidance and instruction to subordinates, often associated with task accomplishment.

Opportunism

The practice of taking advantage of situations with little regard for principles or consequences, often to gain personal benefits.