Which of the following forms of organization would not be allowed under Rule 505,Resolution Concerning Form of Organization and Name,of the Professional Code of Conduct?
A) Limited liability partnership; all partners are CPAs.
B) Limited liability partnership; 70 percent of partners are CPAs.
C) Limited liability corporation; all shareholders are CPAs.
D) Partnership; 40 percent of partners are CPAs.

Question

Quizplus · Accepted Answer

Rule 505 requires that in a partnership, at least 50 percent of the partners must be CPAs. Therefore, a partnership with only 40 percent of partners being CPAs would not be allowed. The other options would all be allowed as they have at least 50 percent of CPAs in the organization.

Which of the Following Forms of Organization Would Not Be