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Michael Tormey and Amy Arnett are the founding partners of McMillan Corporate Services. Founding the business was relatively straightforward and over the last 20 years, the expertise provided by Tormey and Arnett have been key to making McMillan a success. Every Friday afternoon, Tormey and Arnett meet to discuss the status of the business, and have decided to devote this week’s meeting to strategic alternatives. Tormey believes that while the partnership structure has served McMillan well during its history, it may be time to reform the business into a corporate structure. Arnett, however, is not so sure. Which of the following arguments would be most effective to convince Arnett that a corporate structure would be beneficial for McMillan? The corporate structure would: A. allow for easier transition of ownership, reduce legal requirements associated with running the business, and create a legal separation between the owners and the business. B. provide more opportunities for raising capital, allow for easier transition of ownership, and reduce the liability that they as owners would incur. C. create a legal separation between the owners and the business, allow for fewer conflicts of interest, and reduce the liability that they as owners would incur. |