Fred and Ella Are Going to Establish a Business

question 25

Multiple Choice

Fred and Ella are going to establish a business. 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 Fred and Ella.

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Definitions:

Achievement Need

This refers to an individual's need for success, accomplishment, and setting and achieving challenging goals.

Moderately Difficult Goals

Objectives that are challenging yet achievable, often motivating individuals to perform better.

Periodic Feedback

Regular and systematic provision of evaluative information on performance or progress, intended to guide future improvements.

Shared Responsibility

The concept of distributing the duties and obligations among various parties to ensure collective accountability and efficiency.