Question

Sally and Alicia are equal general partners in a business. They are content with their current management and tax situation but are uncomfortable with their unlimited liability. Which form of business entity should they consider as a replacement to their current arrangement assuming they wish to remain the only two owners of the business

Answer 1

Answer: Limited Liability Company

Step-by-step explanation:

Based on the scenario above, the form of business entity should they consider as a replacement to their current arrangement assuming they wish to remain the only two owners of the business is a limited liability company.

A Limited Liability Company is a form of business that is limited by shares and gives protection to its owners as the owners are only liable to the debt of the business based on the value of their shares in the business.

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