_____ 10 a Limited Liability Company That Has Only One Member

question 102

True/False

_____ 10. A limited liability company that has only one member must be taxed as a sole proprietorship.

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Definitions:

Extraordinary Repairs

Infrequent expenditures that extend an asset’s life (such as a new engine in a car).

Betterments

Improvements that increase the efficiency of an asset by adding accessories or replacing parts with more effective/powerful ones.

Revenue Expenditures

Expenses incurred during the normal operation of a business that are expected to be consumed within the same accounting period.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.