A Group of College Graduates Starts a Business

Multiple Choice

A group of college graduates starts a business.They want to give their business a structure such that their risk is limited to the amount they have invested in the business.They also want to avoid double taxation of the income that they generate from the business.Which of the following structures is most suitable to satisfy these wants?

A) sole proprietorship
B) corporation
C) direct partnership
D) S corporation
E) general partnership