If a Partnership Chooses to Form an LLC, Under the Check-

question 94

Multiple Choice

If a partnership chooses to form an LLC, under the check- the- box rules, and assuming no elections are made, the entity will be taxed as

• A) a C corporation.
• B) an S corporation.
• C) a partnership if it has more than one member.
• D) Unable to determine from the facts presented.

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Definitions:

Allocative Efficiency

A state of resource allocation in which it is impossible to make one individual better off without making at least one individual worse off.

Short Run

A term in economics referring to a time frame in which certain resources, particularly capital, are fixed and cannot be adjusted.

Socially Optimal Price

The price point at which the social welfare (total benefits to society) is maximized, often considered when analyzing the impact of public goods or services.

Pure Monopoly

A market structure where only one supplier provides a unique product or service, thereby controlling the entire market.