Which of the following businesses is most likely to be organized as an LLP?
A) a bookstore run by two partners
B) an international retail chain
C) an accounting firm run by two partners
D) a stationery store owned by an individual

Question

Quizplus · Accepted Answer

LLPs (Limited Liability Partnerships) are commonly used by professional service businesses, such as law firms, accounting firms, and consulting firms. These types of businesses are typically owned and operated by a small number of partners who want to limit their personal liability for the actions of their business and maintain management control. Option C, an accounting firm run by two partners, is the only choice that fits this description. The other options are more likely to be organized as a sole proprietorship (D) or a corporation (A & B).

Which of the Following Businesses Is Most Likely to Be