Which of the rows in the following table is the correct combination of characteristics for C-Corps; S-Corps LLCs; and Partnerships?
$\begin{array}{|l|l|l|l|}
\hline \text { Characteristic }&\text { C-Corp } & \text { S-Corp LLC } & \text { Partnership } \
\hline \text { a. Limited liability for all owners }& \text { Yes } & \text { Yes } & \text { Yes } \
\hline \text { b. Owners can participate in management }& \text { No } & \text { No } & \text { No } \
\text { without losing liability protection }\
\hline \text { c. Number of owners }&1 \text { or more } & 1-100 & 1 \text { or more } \
\hline \text { d. Easy to form and maintain without }&\text { Yes } & \text { No } & \text { No } \
\text { extensive records }\
\hline
\end{array}$
A) a
B) b
C) c
D) d

Question

Quizplus · Accepted Answer

C-Corps and S-Corps provide limited liability for all owners, but partnerships do not necessarily offer this to all partners (e.g., general partners in a partnership can have unlimited liability). Owners can participate in management without losing liability protection in S-Corps and LLCs, and partnerships inherently involve owner management, making statement b incorrect. The number of owners is accurately described for S-Corps (1-100, also must be U.S. citizens or residents) and does not limit C-Corps or partnerships on the number of owners, making statement c correct. C-Corps require extensive records and formalities, unlike the suggestion in statement d that they are easy to form and maintain without extensive records.

Which of the Rows in the Following Table Is the Correct