Five Accountants Have Formed an Organization Within Which They Will

Multiple Choice

Five accountants have formed an organization within which they will provide their services.What type of organization have they most likely chosen and why?

A) They have formed a corporation in which members are liable for their own malpractice but not for the malpractice of other members.
B) They have formed a partnership because members are not liable for their own malpractice or for the malpractice of other members because recovery for malpractice may only be obtained from assets of the partnership itself.
C) They have formed a limited liability partnership because members are liable for their own malpractice but not for the malpractice of other members.
D) They have formed a corporation because the tax structure is most beneficial to the five of them this way.