A group of college graduates starts a business.They want to give their business a structure such that their risk is limited to the amount they have invested in the business.They also want to avoid double taxation of the income that they generate from the business.Which of the following structures is most suitable to satisfy these wants?
A) sole proprietorship
B) corporation
C) direct partnership
D) S corporation
E) general partnership

Question

Quizplus · Accepted Answer

A)S corporation is a type of corporation that combines the capital-raising options and limited liability of a corporation with the federal taxation advantages of a partnership. The owners can incorporate their business as an S corporation in order to satisfy their requirements.
B)S corporation is a type of corporation that combines the capital-raising options and limited liability of a corporation with the federal taxation advantages of a partnership. The owners can incorporate their business as an S corporation in order to satisfy their requirements.
C)S corporation is a type of corporation that combines the capital-raising options and limited liability of a corporation with the federal taxation advantages of a partnership. The owners can incorporate their business as an S corporation in order to satisfy their requirements.
D)S corporation is a type of corporation that combines the capital-raising options and limited liability of a corporation with the federal taxation advantages of a partnership. The owners can incorporate their business as an S corporation in order to satisfy their requirements.
E)S corporation is a type of corporation that combines the capital-raising options and limited liability of a corporation with the federal taxation advantages of a partnership. The owners can incorporate their business as an S corporation in order to satisfy their requirements.

A Group of College Graduates Starts a Business