Which of the following is a consequence of establishing a family partnership or a family-owned S corporation?
A) The original owners will have their control of the business diluted.
B) For the structure of the family business to be honored, the transfers to the younger family members must be complete and legally binding.
C) The transfers to the younger family members must be irrevocable.
D) All of these choices are consequences of establishing a family partnership or a family-owned S corporation.

Question

Quizplus · Accepted Answer

All of these choices are consequences of establishing a family partnership or a family-owned S corporation. The original owners may have their control of the business diluted, the transfers to the younger family members must be complete and legally binding, and the transfers must be irrevocable for the structure of the family business to be honored.

Which of the Following Is a Consequence of Establishing a Family