Can someone explain to me why this microeconomics answer is correct?

Anonymous
I know that the answer is LLC and S corporation, but I don't understand why? The text book and internet don't really explain the why factor, they just give the answer.
Can someone explain to me why this microeconomics answer is correct?
Updates:
11 d
I meant business financing question, sorry for the confusion
Can someone explain to me why this microeconomics answer is correct?
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