If a Company Wants to Protect Its Three Investors Against

question 89

Multiple Choice

If a company wants to protect its three investors against personal liability risk,which of the following business forms would not be a suitable option?

• A)C Corporation
• B)S Corporation
• C)Limited liability partnership
• D)Partnership
• E)Limited liability company

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Definitions:

Organize

To arrange and coordinate activities or items systematically for efficiency or clarity.

Plaintiff

An individual or group that brings a lawsuit against another party in a court of law, alleging harm or wrongdoing.

Defendant

An individual, company, or institution sued or accused in a court of law.

Constitutional Democracy

A form of government in which the power of the rulers is limited by a written or unwritten constitution, and the rights of the citizens are typically protected by law.