Carl, Anne, and Al were friends in college. After graduation they decided to open a computer
consulting business. They each have $20,000 to put into the business, and want equal shares of
the business.
However, they are worried about liability because they had heard of a consultant
who crashed a client's computer and was sued for $1,000,000. They also want to avoid double
taxation. The most likely form of business organization for them would be a
A) corporation.
B) partnership.
C) limited partnership.
D) sole proprietorship.
E) Subchapter S corporation.
E
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