Which of the Following Is a Disadvantage of an LLC

question 39

Multiple Choice

Which of the following is a disadvantage of an LLC?

• A)For security law purposes, an ownership interest in an LLC is not necessarily a security.
• B)There is no general partner requirement.
• C)Taxable income and losses pass through to the owners.
• D)The states are not uniform in their treatment of limited liability companies.

---

Definitions:

Budgeting

The process of creating a plan to spend your money, outlining how much money will be earned and how it will be spent.

Static Planning Budget

A budget based on a fixed level of activity, not adjusted for actual activity levels.

Customers Served

The number of individual customers or clients that a business has provided goods or services to during a specific period.

Total Expenses

Represents the sum of all costs and expenses incurred by a business in a specific period, including both operational and non-operational items.