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.

---

Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision; it represents the benefits that could have been received but were given up to take another course of action.

Medium Of Exchange

A device or mechanism designed to assist in the buying, selling, or exchanging of products among individuals or groups.

American Dollar

The official currency of the United States, also known as the USD or US Dollar.

Members

Individuals who are part of an organization, group, or body, contributing to and benefitting from its activities and objectives.