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.

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Definitions:

CVP

Cost-Volume-Profit Analysis, a financial tool used to determine how changes in costs and sales volume affect a company's operating income and net income.

Better Value

Describes a product or service that offers more favorable conditions or advantages for its cost compared to other options.

Competition

The rivalry between businesses or individuals over customers, market share, and resources.

Business Model Canvas

A strategic management tool used to develop new or document existing business models, visually outlining a company's value proposition, infrastructure, customers, and finances.