Sophia and Frederik Are Opening a Landscape Company

Multiple Choice

Sophia and Frederik are opening a landscape company. Although they will each own 50% of the business, Sophia will be doing more work. The plan is to give her 60% of the profits and give Frederik the remaining 40%. This relates to which key consideration for choosing ownership structure?

A) taxation and division of profits
B) legal and financial liability
C) ease of start-up and administration
D) business control and transfer of ownership