Which of the Following Statements Is True of a Limited

question 82

Multiple Choice

Which of the following statements is true of a limited liability company (LLC) ?

• A) It offers less flexibility than a corporation in terms of tax treatment.
• B) It is by far the most common type of business organization in the United States.
• C) It is a relatively new form of business ownership in the United States.
• D) It is required to hold regular board meetings.

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Definitions:

Matured

Used to describe financial instruments or investments that have reached their due date for payment or realization.

Investment

Allocation of resources, usually money, with the expectation of generating an income or profit.

Income Tax Overpayment

A situation where an individual or entity has paid more income tax to the government than was actually owed.

Canada Revenue Agency

The federal agency responsible for administering tax laws and various social and economic benefit and incentive programs delivered through the tax system for the Government of Canada.