John is a partner in Mike's Motorcycles Inc., which has been a partnership for a decade. Recently, the partners agreed to change the structure of the business to a C corporation. As a result, John will now be a _____.

Question

Quizplus · Accepted Answer

The change to a C corporation means that the business has become a separate legal entity, distinct from its owners. As a result, the partners will no longer have personal liability for the business's debts and obligations, and they will instead have ownership in the form of shares of stock. Therefore, John will now be a shareholder in the corporation.

John Is a Partner in Mike's Motorcycles Inc