Question

Geneva needs additional capital to launch her business but does not want to share management responsibility with partners. Neither does she want to pay the high taxes often assessed on businesses. Her best option may be​ a(n) ________. A. sole proprietorship B. limited liability partnership C. S corporation D. C corporation

Answer 1

Answer:

The answer is: C) S corporation

Explanation:

Geneva should choose an S Corporation. In my opinion she should do it because corporate income, losses, deductions, and credits are passed through to its shareholders, while it can be managed like a normal corporation.

If she chooses a Limited Liability Partnership she would still have to share management responsibility with her partners and C Corporations are heavily taxed. If she had enough money she could start a sole proprietorship business, but she doesn't have enough money.