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:

Enforceable

A term used to describe a legal agreement or rule that can be upheld or compelled by law.

Oral Contract

An agreement made through spoken communication between parties, rather than in writing, yet is legally binding.

Project

A project is a planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Eighteen Months

A time period equal to one and a half years.