Question

Sally and Alicia are equal general partners In a business. They are content with their current management and tax situation but are uncomfortable with their unlimited liability. Which form of business entity should they consider as a replacement to their current arrangement assuming they wish to remaln the only two owners of the business?a. Sole proprietorship b. Jolnt stock company c. Limited partnership d. Limited ability company e. Corporatiorn

Answer 1

Answer:

limited liability company    

Explanation:

A limited liability company refers to the corporate structure in the USA in which the proprietors are not personally responsible for the loans or liabilities of the corporation.

Limited liability businesses are fusion organizations which incorporate a company's qualities with that of a partnership. Limited liability companies (LLCs) are really an enterprise framework permitted under state statutes. The rules applicable to LLCs vary by state. Commonly, LLC proprietors are termed members.

Thus, from the above we can conclude that the most suitable option for sally and Alicia is limited liability company.