Many new business owners prefer a limited liability structure because there are ________
A) fewer corporate formalities
B) fewer lawsuits
C) typically higher profits than other forms of ownership
D) more informal agreements
E) limits on the number of members
A
Explanation: A) Although the limited liability structure involves more formal paperwork than a sole proprietorship or partnership, it is still a far simpler structure than a corporation and thus easier for new business owners to navigate.
You might also like to view...
Broad-based interview questions are based on the theory that your past performance is the best indicator of your future behavior
Indicate whether this statement is true or false.
Any initial direct costs incurred by the lessor for a lease agreement that is classified as an operating lease should be
A) expensed in the same period that the expenditure is made. B) recorded as a prepaid asset and allocated to expense over the lease term. C) deferred and recognized as a reduction in the interest rate implicit in the lease. D) directly charged (debited) to Retained Earnings.
Insistence from the CEO that she must be present at all meetings between the audit committee and internal/external auditors would cause auditors to assess inherent risk at a higher level
a. True b. False Indicate whether the statement is true or false
An inherent risk related to asset impairment is management is not typically interested in writing down the asset value
a. True b. False Indicate whether the statement is true or false