Question

Doug decides to start a business transporting toxic waste from the North Dakota oilfields. He has found an inexpensive truck for hauling the waste. Doug knows the truck is inadequate and is looking for the best business entity to protect his personal assets. Which of the following is true?

Question 18 options:

	Doug should select a limited liability company which permits single owners, protects him from personal liability and avoids a court "piercing the veil" to access his personal assets.
	Doug should select a C-corporation which permits single owners and protects him from personal liability. The double-taxation will provide additional protection of his personal assets.
	Doug should select an S-corporation which permits single owners, protects them from personal liability and avoids double taxation.
	Doug can select either a limited liability company or corporation which permit single owners and protect him from personal liability but he may be subject to a court "piercing the veil" to access his personal assets.

The main advantages of a corporation as a business entity are easy set-up and administration combined with single-level taxation and limited liability of the shareholders.

Question 17 options:

	True
	False

Lauren, an employee of Julie, has stolen her secret recipe for Julie's Green Chicken high-energy drink. Julie can bring a legal action against Lauren for

Question 21 options:

	Burglary
	Robbery
	Nothing as Julie should have made sure Lauren would not have access to the recipe
	Misappropriation of trade secret

Answer 1

Q.18

Answer D.

Doug can select either a limited liability company or corporation which permit single owners and protect him from personal liability but he may be subject to a court "piercing the veil" to access his personal assets.

(C corporation - No Doble taxation protection , LLC and S corporation are not independet from corporate veil)

Q 17

False

It is not easy to easy to setup and double taxation can be main dis advantage of it.

Q.21

Misappropriation of trade secrets

(The case can be filed for misappropriation of trade secrets)