Question

Irina, Ron, and Benz want to start the business of designing the interiors of offices. All of them want to actively manage the company and do not want to be personally responsible for the debts and obligations of the company. Moreover, they do not want to hold regular board meetings. The three are most likely to form a _____.

a. limited liability company
b. general partnership
c. nonprofit corporation
d. sole proprietorship

Answer 1

Irina, Ron, and Benz are likely to form a limited liability company (LLC) which fulfills their requirements of active management without personal liability for debts and avoiding regular board meetings.

Step-by-step explanation:

Irina, Ron, and Benz are looking to start a business designing interiors of offices, with active management roles but without personal liability for the company's debts and obligations. Given their requirements of not wanting to hold regular board meetings, they're most likely to form a limited liability company (LLC). An LLC provides the benefits of limiting their personal liability similarly to a corporation, but it is often simpler to operate and does not require regular board meetings, making it a flexible option for small businesses.