Which of the Following Statements Is TRUE for a Limited

question 89

Multiple Choice

Which of the following statements is TRUE for a limited liability company?

• A)Members have unlimited liability for the debts of the business.
• B)Members are not personally liable for the debts of the business.
• C)Only the limited partners have limited liability for the debts of the business.
• D)Members are not taxed like members of a partnership.

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Definitions:

Wealth Earned

Financial gains obtained through work, investment, or other means of income generation.

Distribute

To distribute means to give out or spread something widely among a number of recipients.

Artificial Entities

Organizations created by law, such as corporations or partnerships, that have legal rights and obligations separate from those of their members.

Morally Accountable

Being responsible or answerable for one's actions from an ethical or moral standpoint.