Dori and Matt Will Be Equal Owners of a New

question 121

Multiple Choice

Dori and Matt will be equal owners of a new business and will be making cash contributions to start up the business.They expect substantial losses in the early years so the business will take out a loan from the bank which Dori and Matt will have to guarantee.For tax purposes,the preferred business form for these early years will be

• A)a C corporation.
• B)an S corporation.
• C)an LLC,taxed as a partnership.
• D)either an S corporation or an LLC (partnership).The owners will be indifferent between these two forms.

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Definitions:

Member Satisfaction

The level of contentment experienced by individuals who are part of an organization or group, often influenced by their experiences and expectations.

Process Conflict

A type of conflict that arises from differences in understanding about how tasks should be accomplished in a work environment.

Disagreements

Instances of conflict or difference of opinion between individuals or groups.

Work Organized

A reference to how work is systematically arranged or structured within an organization to achieve efficiency and productivity.