Which of the following forms of organization would NOT be allowed under the Form of Organization and Name Rule 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

According to the Form of Organization and Name Rule of the Professional Code of Conduct, a partnership must have a majority of CPAs as partners (more than 50%). Therefore, option D, where only 40% of partners are CPAs, would not be allowed. Options A, B, and C satisfy the rule as they all have at least a majority of CPAs as partners or shareholders.

Which of the Following Forms of Organization Would NOT Be