An empirical analysis of characteristics and experiences of limited liability companies in Iowa
Date
1999
Authors
Shih, Mu-yen
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Advisor
Carter, Richard B.
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Abstract
The limited liability company (LLC) is a relatively new business form. Most states enacted LLC laws in the early 1990s. The impact of this newest and fastest growing business entity could be dramatic. This study examines the major factors that influence the business owners in Iowa choosing LLCs as their starting or transforming business entity. In addition, this study examines the characteristics such as capital structure, management structure and experiences that the owners have. A survey was conducted to test these hypotheses. There were four categories of questions in this survey including the basic characteristics of LLC, major factors that influence the choice of LLCS, capital structure and financing, and management structure and operation of the firm.
A sample of 225 LLCs was randomly drawn from a list of the existing 7451 LLCs in Iowa. The list was obtained from Secretary of State of Iowa in 1998. The statistical results support all the two hypotheses, which state, (1) the major reason for owners to choose LLCs as their starting or transforming business entity is because of limited liability, (2) the major concern of the LLC owners is the uncertainty of the law on LLCS.
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thesis