business associations questions (c) 2014 william h. widen
BA Introductory Materials--Warm Up Questions
Students should read feedback for all answers. Some have explanations and/or links to follow.
Take a look at all relevant statutes and applicable Restatement sections!
Jack and Jill want to start a bakery business together which is equally owned by the two of them. Their goal is to limit their personal liability, to avoid double taxation on income earned by the business and to each have an active role in management of the business. Select the form of business organization that best meets their requirements.
A general partnership.
A subchapter C corporation.
A limited partnership.
A limited liability company.
Identify the type of business organization that does not require approval of the state in which the entity is formed as a prerequisite to entity formation.
A general partnership.
A corporation.
A limited liability company.
A limited liability partnership.
Pauline wants to form a small home building company. She is concerned to limit her personal liability but she also wants to remain as manager of the company. What is likely the best form of business organization for Pauline to use?
A sole proprietorship.
A subchapter C corporation.
A general partnership.
A limited partnership.
A joint venture is a form of business organization that is most similar to which other kind of listed business organization.
A business trust.
A general partnership.
A limited liability company.
A subchapter S corporation.
Identify the form of business organization which provides all of its owners with protection from liability while, at the same time, avoiding liability for Federal income tax at the entity level.
A subchapter C corporation.
A subchapter S corporation.
A general partnership.
A limited partnership.
Under the so-called "check the box" regulations issued by the IRS, a corporation formed under the laws of the State of Florida has which option?
Choose to be taxed as a limited liability company.
Chose to be taxed as a sole proprietorship (and ignored for entity level tax) but only if the corporation has a single shareholder.
The corporation does not have a choice to be taxed as a partnership but must be taxed as a corporation.