Steve and Karen Are Going to Establish a Business Entity

question 129

Multiple Choice

Steve and Karen are going to establish a business entity. 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.
• E) Any of the above should satisfy Steve and Karen.

---

Definitions:

Sex-Linked Abnormalities

Genetic disorders that are associated with the sex chromosomes, often leading to disease or condition manifesting predominantly in one sex.

Dominant-Recessive Pattern

A genetic principle where one allele is dominant over another allele for a particular trait, determining the organism's appearance.

Recessive Trait

A genetic feature that is expressed in an individual only when two copies of the gene responsible for the trait are present.

Dominant Gene

A gene that expresses its phenotypic effect even when heterozygous with a recessive gene, thus overriding the expression of the recessive gene.