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:

Dispose

The act of selling, transferring, or getting rid of an asset or property.

Property

Assets or rights owned by individuals or entities, which can be tangible or intangible, and are subject to ownership claims.

Lifetime

The period during which something is functional, active, or intended to last.

Fixture

An item of personal property that has been attached to or closely associated with real property in such a way that it becomes legally part of the real property.