Which of the Following Statements Regarding Limited Liability Companies Is

question 2

Multiple Choice

Which of the following statements regarding limited liability companies is false?

• A) Every member of an LLC has limited liability for the LLC's debts.
• B) An LLC with only one member is generally treated as a corporation for income tax purposes.
• C) An LLC with more than one member is generally treated as a partnership for income tax purposes.
• D) State laws do not limit the number of members or the type of entity that can be a member in an LLC.

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Definitions:

Self-Management

The ability to manage one's own time, behavior, and emotions, particularly in the pursuit of personal goals and in overcoming distractions and obstacles.

Sound Decisions

Choices made based on reasoning, knowledge, and a balanced consideration of consequences.

Adult Learning Cycle

A concept in adult education that typically involves stages of learning such as experiencing, reflecting, thinking, and acting, suggesting that adults learn best when they go through these cyclical phases.

Critical Thinking Skills

The ability to analyze information objectively and make a reasoned judgment.