The Key to Choosing the Right Form of Ownership Is

question 14

Multiple Choice

The key to choosing the right form of ownership is ________.

• A)envisioning where your business will be in 10 years
• B)understanding the characteristics of each form and knowing how they affect your business and personal circumstances
• C)forming either an S corporation or a limited liability company since they are the only forms that offer owners liability protection
• D)irrelevant since choosing a form of ownership is merely a technicality and has little impact on the business and its owner(s)

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Definitions:

Rectification

The process of correcting or making right an error, especially in legal documents.

Voidable

A term describing a contract or transaction that remains valid until one party takes action to void it, often due to elements like fraud or misrepresentation.

Worthless Cheque

A cheque that cannot be processed because the account it is drawn on does not have sufficient funds.

Innocent Purchaser

An individual who buys property without knowledge of any existing claims, liens, or encumbrances against it.