Identify Which of the Following Statements Is True

question 118

Multiple Choice

Identify which of the following statements is true.

• A)Under the check-the-box regulations, an LLC that has one member (owner)may be disregarded as an entity separate from its owner.
• B)An unincorporated business may not be taxed as a corporation.
• C)A new LLC that is owned by four members elects to be taxed under its default classification (as a partnership)in its first year of operations. The entity is prohibited from changing its tax classification at any time in the future.
• D)All of the above are false.

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Definitions:

Cash Account

A financial account that tracks the money that is readily available for a company or individual, including physical currency and balances in bank accounts.

Raw Materials

The basic materials from which a product is made, often used in manufacturing processes.

Cash Account

An account that tracks the amount of cash transactions entering and leaving a business.

Raw Materials

The basic substances in their natural, modified, or semi-processed state used in the production or manufacturing of goods.