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:

Raw Materials

The basic materials and inputs used in the production process to manufacture finished goods.

Work in Process

Inventory that includes items being manufactured but not yet completed, representing a stage between raw materials and finished goods.

Raw Materials

are basic substances or components used in the manufacturing process to create finished goods.

Storeroom

A room or space used to store materials, tools, and other supplies needed for operations or production.