Bill,a local inventor,developed a diet pill that he believes will solve the obesity problem in the United States.Bill wants to create a new company,50% owned by Bill and 50% owned by a major drug company.Although he believes the pills are safe,Bill is concerned about liability if someone becomes sick or dies.The best form of business organization for the new company is
A) sole proprietorship with Bill as owner and the drug company as creditor.
B) general partnership with Bill and the drug company as equal partners.
C) S-type corporation with Bill and the drug company owning equal shares.
D) limited liability company with Bill and the drug company owning equal shares.

Question

Quizplus · Accepted Answer

A limited liability company (LLC) would provide liability protection for both Bill and the drug company, while allowing them to own equal shares of the business. This means that neither party would be personally responsible for the debts or liabilities of the company. Additionally, an LLC offers more flexibility in terms of management and taxation compared to a corporation or a partnership.

Bill,a Local Inventor,developed a Diet Pill That He Believes Will