1 Mackenzie has come up with a fantastic idea for a business: a company that bakes and...
Question:
1）
Mackenzie has come up with a fantastic idea for a business: a company that bakes and sells savory cupcakes. Her signature product would be a yellowfin-tuna flavored cupcake with wasabi flavored frosting. She has convinced 16 students in her BADM300 class to join her as co-owners in the venture. They want to choose a business form that is simple; they don't want to have to register with the secretary of state or hold annual meetings or have a board of directors or anything of that sort. Which of the following is the BEST course of action in light of their concerns?
Form a C corporation with Mackenzie and her classmates as shareholders
Form an S corporation with Mackenzie and her classmates as shareholders
Form a general partnership with Mackenzie and her classmates as partners
Form a limited liability company with Mackenzie and her classmates as members
2）
Which of the following is a disadvantage of organizing your business as an LLC?
LLCs do not enjoy single (flow-through) taxation
Members of an LLC do not control the management of the company
Members of an LLC have unlimited personal liability
It is relatively difficult to raise capital
Expert Answer:
