Which of the following is the form of business ownership used by most public accounting firms?
A)limited liability partnership
B)C corporation
C)S corporation
D)general partnership

Question

Quizplus · Accepted Answer

Most public accounting firms use the limited liability partnership (LLP) form of business ownership. This type of entity provides protection from personal liability for the actions of the other partners in the firm. This is important in the accounting industry where the actions of one partner can affect the reputation and financial standing of the entire firm. C corporations are not commonly used because they are subject to double taxation, and S corporations have restrictions on the number and type of shareholders they can have. General partnerships are not as common because they do not provide the same level of liability protection as an LLP.

Which of the Following Is the Form of Business Ownership