Brian just formed a C corporation. The shareholders of the corporation will be he and his...

 

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Brian just formed a C corporation. The shareholders of the corporation will be he and his wife Carrie and his father Bob, who put $35,000 of cash into the business. Brian explained to his wife and dad that he organized the business as a C corporation because of the ease of transfer of ownership of the stock. He said that if any of the three of them wanted his or her money out of the corporation, that person could simply find a buyer for the stock, just like the shareholders of Google and other large public corporations do, and transfer the ownership. Does Brian have realistic expectations regarding the ease of getting out of his investment if he wants to? Why or why not? What would be a better choice for form of business ownership for Brian? Brian just formed a C corporation. The shareholders of the corporation will be he and his wife Carrie and his father Bob, who put $35,000 of cash into the business. Brian explained to his wife and dad that he organized the business as a C corporation because of the ease of transfer of ownership of the stock. He said that if any of the three of them wanted his or her money out of the corporation, that person could simply find a buyer for the stock, just like the shareholders of Google and other large public corporations do, and transfer the ownership. Does Brian have realistic expectations regarding the ease of getting out of his investment if he wants to? Why or why not? What would be a better choice for form of business ownership for Brian?

Answer rating: 100% (QA)

First part of the question Definitely no Brian does not have realistic expectations regarding the ea... View the full answer