In forming a(n) _____, the entrepreneur gives up proprietary interest in the corporation and dedicates all the assets and resources of the corporation to tax-exempt activities.
A) B-corporation
B) l imited liability company (LLC)
C) C-corporation
D) S-corporation
E) nonprofit corporation

Question

Quizplus · Accepted Answer

A nonprofit corporation is specifically formed for purposes other than making a profit, and its assets and resources are dedicated to tax-exempt activities. This structure requires the entrepreneur to give up proprietary interest in the corporation, aligning with the description.

In Forming A(n) _____, the Entrepreneur Gives Up Proprietary Interest