Monica and Chandler are reviewing business structures for their new bagel bakery and have discovered they like some aspects from each of the business structures they have reviewed. Ideally, they would like to use a structure that combines elements from more that one business structure. Which business structure is a hybrid of two other structures?

Question

Monica and Chandler are reviewing business structures for their new bagel bakery and have discovered they like some aspects from each of the business structures they have reviewed. Ideally, they would like to use a structure that combines elements from more that one business structure. Which business structure is a hybrid of two other structures?
A. sole proprietorship 
B. limited liability company 
C. Partnership 
D. corporation

GPT-4o mini · Answer

B. limited liability company

A limited liability company (LLC) is a hybrid business structure that combines elements of both a corporation and a partnership (or sole proprietorship). It offers the limited liability protection of a corporation while allowing for pass-through taxation similar to that of a partnership. This makes it an attractive option for many small business owners, including Monica and Chandler for their new bagel bakery.