facebook co founder and CEO Mark Zuckerburg and his wife recently had a baby. To

Question

facebook co founder and CEO Mark Zuckerburg and his wife recently had a baby. To honor her birth they announced that during their lifetimes, they would donate 99% of their facebook shares to charity. The shares have an esimated worth of more than $45 billion. To manage the money theyve set up a limited liability corporation (LLC) called the Chan Zuckerberg initiative. Explain whether or not you thnk the LLC form was a good choice. Explain why or why not, if you think another corporation form would have beeen better explain why

Explanation / Answer

yes, it is a good choice. because its resources are predetermined and limited in nature. the firm is going to work for non profit organizaiton; in this they are going to be spend funds on different developmental and welfare activities around the world. for this they are not looking for aditional funds, they only operates the firm based on the income earned on the $45 millions. so, the founder assumed that its liability is limited in nature and in future they are not going to be raise capital from any other sources, so it is better to be registered the new firm as limited liability firm.

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