Which of the Following Is a Characteristic of Limited Liability

question 145

Multiple Choice

Which of the following is a characteristic of limited liability companies (LLCs) ?

• A) They are made to pay an annual franchise tax in many states.
• B) They are subject to double taxation.
• C) They do not allow foreign investors to serve as owners.
• D) They are required to produce a larger amount of paperwork than corporations.

---

Definitions:

Mortgagee

The lender or financial institution in a mortgage agreement, who holds the mortgage as a security for the loan provided to the borrower.

Construction Lien

A legal claim against a property by a contractor or subcontractor for unpaid work or materials.

Building Contract

A legal agreement detailing the terms under which construction work is to be carried out, including obligations, timelines, and payment details.

Lumber Supply Company

A business entity that specializes in sourcing, distributing, and possibly manufacturing wood and wood products for various uses.