Three construction contractors decide to form a real estate development firm where they will share ownership and decision making. They would like the ability to allow others to "buy in" to the business, but only if those people will be active participants who can add value to the existing ownership team. Which form of business should they most likely choose?
A) sole proprietorship
B) syndicate
C) partnership or LLP
D) joint venture

Question

Quizplus · Accepted Answer

A partnership or LLP (limited liability partnership) would allow the contractors to share ownership and decision making, while also giving them the ability to invite others to invest and become active participants. A sole proprietorship would not allow for additional owners, a syndicate is typically used for short-term investments, and a joint venture is a temporary partnership for a specific project.

Three Construction Contractors Decide to Form a Real Estate Development