1. a. Why are corporations the dominant form of business based on revenues in the United States?
b. What is meant by a “distorporation”?
c. Why are distorporations gaining ground against “regular” corporations in the public capital markets?
2. a. Why are sole proprietorships problematic if a proprietor dies or is disabled?
b. Do partnerships experience similar problems? Explain.
3. a. What characteristics of an LLC cause it to be the fastest-growing business form in the United States?
b. What are its advantages over a corporation?
Before the rise in the availability of the various hybrid forms discussed, some states required certain activities to be carried on in the partnership form, most notably the licensed professions. The primary concern was that these professionals should not be able to escape personal liability for malpractice by incorporating their practices. As noted above, all states now offer an alternative to a general partnership for these professions.