Three College Graduates Want to Start an Auto Shop

question 61

Multiple Choice

Three college graduates want to start an auto shop. Two of the partners will do most of the work, so they plan to share, receiving 40% of the profits each. The remaining partner will get 20% of the profits. Because working with other people's cars can create liabilities, they want to form of business that provides liability protection. Which form of business best fits their needs?

• A) sole proprietorship
• B) partnership
• C) LLP
• D) pass-through corporation

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Definitions:

Second Stage

Refers to a subsequent phase or step in a process or sequence, often implying development or progression from an initial stage.

Dilations

The process of expansion or enlargement in geometry, or the widening of blood vessels or pupils in biological contexts.

Actual Birth

The occurrence or process of being born.

Contractions

The tightening and shortening of muscles, often referring to those of the uterus during childbirth.