Ownership Forms for Pooled Equity Investment Can Differ in Terms

question 18

Multiple Choice

Ownership forms for pooled equity investment can differ in terms of how the entity's cash flows are distributed to its investors. Which of the following ownership structures requires cash flows to be allocated to each shareholder in proportion to his or her ownership of the entity, thereby preventing special allocations to multiple classes of investors?

• A) Subchapter S Corporation
• B) General Partnership
• C) Limited Partnership
• D) Limited Liability Company

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