The five owners of Kombustible and Ballistic and Otherwise Objectionable Materia

Question

The five owners of Kombustible and Ballistic and Otherwise Objectionable Materials ("KABOOM" desire to organize a business entity and properly qualify the company to do business. KABOOM maintains a manufacturing facility in Pennsylvania and sales offices in Pennsylvania, Maryland, and Virginia. KABOOM sells products online and has regularly sold and delivered products to customers in Pennsylvania, Maryland, and Virginia. Over the past year, KABOOM made two sales to customers in Delaware. Answer the following. 17. Which of the following types of entities are available for use by the owners? A. Corporation B. General Partnership C. Limited Liability Company D. All of the above If the owners desire to establish liability protection for themselves, which type of entity may the organizers form? 18. A. Corporation B. General Partnership C. Limited Liability Company D. Any of the above E Aor C 19. Assume that the organizers elect to form a limited liability company. Where may the organizers file articles of organization? A. Only in Maryland B. Only in Pennsylvania C. Only in Virginia D. In any jurisdiction 20 Assume that the organizers elect to form a Pennsylvania limited liability company. Apart from Pennsylvania and based on the facts above, where else would you recommend to the organizers that they must qualify KABOOM to do business?

Explanation / Answer

17) Option D is correct.
They can form any entity like corporation, limited liability or general partnership its solely depends upon the decision of the owners and their requirement.
18) Option A and C
Both corporation and limited liabilty company have limited liabilities to an extent amount contributed by the owners in the business.
19) Option B
20 Option D

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