Which of the following forms of organization would NOT be allowed under Rule 505 of the Professional Code of Conduct?
A) Limited liability partnership; all partners are CPAs
B) Limited liability partnership; 70% of partners are CPAs
C) Limited liability corporation; all shareholders are CPAs
D) Partnership; 40% of partners are CPAs

Question

Quizplus · Accepted Answer

Rule 505 requires that a majority of the ownership in a CPA firm must be held by CPAs. A partnership with only 40% of partners as CPAs does not meet this requirement.

Which of the Following Forms of Organization Would NOT Be