OACETT Internationally Educated Professional Practice Exam IEPPE Question # 34 Topic 4 Discussion

OACETT Internationally Educated Professional Practice Exam IEPPE Question # 34 Topic 4 Discussion

IEPPE Exam Topic 4 Question 34 Discussion:
Question #: 34
Topic #: 4

Brown and Green have a concept for a new survey measuring instrument based on their many years in the Civil Survey field. They want to establish a business to raise capital, design, manufacture, and market this new instrument. Both Brown and Green are well established, are in their mid-50s, and have no family members who would be prepared to take over the business when they are ready to retire in about 10 years.

If Brown and Green had assets and needed to raise money for their new venture, which form of business might make it easier to obtain a bank loan?


A.

A joint venture because they would not have to personally guarantee the loan.


B.

A corporation because they would not have to personally guarantee the loan.


C.

A partnership because they would not have to personally guarantee the loan.


D.

Either a corporation or partnership as long as they personally guaranteed the new business loan; although generally, a corporation has more flexibility.


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