Question

Friedo and Miriam meet at a start-your-own business workshop. They would both like to open a bookstore. While they have start-up capital, they are worried about the risk to their personal property. Which of the following would most likely be the best business choice for each of them?

a. Sole proprietorship
b. Partnership
c. Limited liability company
d. Corporation

Answer 1

Limited Liability Company

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Step-by-step explanation:

3.

(03.03 MC)

Friedo and Miriam meet at a start-your-own business workshop. They would both like to open a bookstore. While they have start-up capital, they are worried about the risk to their personal property. Which of the following would most likely be the best business choice for each of them? (5 points)

Answer 2

c. Limited liability company

Step-by-step explanation:

Friedo and Miriam should partner and form as limited liability company. A limited liability company is the best choice for them because of the following reasons.

They both have start-up capital and have the same business idea.

A limited liability company is a separate legal entity that can own property and incur liability. As directors of the company, Friedo and Miriam will not be personally liable for the debts of the company.

Should the company fail in meeting its obligations, Friedo and Miriam will only be liable to the extent of their share contributions. Meaning their personal properties will not be involved.