Tuan and Ella Are Going to Establish a Business

question 74

Multiple Choice

Tuan and Ella are going to establish a business. They expect the business to be very successful in the long-run, but project losses of approximately $100,000 for each of the first five years. Due to potential environmental concerns, limited liability is a requisite for the owners. Which form of business entity should they select?

• A) General partnership.
• B) Limited partnership.
• C) C corporation.
• D) S corporation.

Understand the principles of mutual exclusivity and joint exhaustiveness in classification.

Identify and organize concepts according to levels of organization.

Recognize the use of consistent principles in classification.

Distinguish between essential and non-essential attributes for classification.