In exiting the business,an entrepreneur transfers the majority of the shares of stock to family members,but retains control of the operations of the business for the next five years. This is an example of a (an)
A) trust.
B) intangible strategy.
C) limited partnership.
D) balance sheet partnership.
E) positive affect partnership.

Question

Quizplus · Accepted Answer

A limited partnership allows for the transfer of ownership while the original owner can maintain control over the operations of the business. This structure enables the entrepreneur to pass on shares to family members while retaining operational control.

In Exiting the Business,an Entrepreneur Transfers the Majority of the Shares