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)

Question

Quizplus · Accepted Answer

Understanding the characteristics of each form of ownership and how they affect the business and personal circumstances is the key factor in choosing the right form of ownership. Envisioning the future and forming certain types of corporations only provides a partial picture and may not be the best fit for every business.

The Key to Choosing the Right Form of Ownership Is