Which of the Following Statements, If Any, About a Multi-Member

question 128

Multiple Choice

Which of the following statements, if any, about a multi-member LLC is false?

• A)A multi-member LLC is usually taxed like a partnership.
• B)"Members" of an LLC generally have limited personal liability for debts of the LLC, except for the managing member who has unlimited liability for LLC debts.
• C)"Members" of an LLC can participate in management of the LLC unless the member agrees not to participate.
• D)An LLC can specially allocate income items, as long as the substantial economic effect rules of § 704(b) are followed.
• E)None of the above statements is false.

---

Definitions:

Numbered List

A list organized with items denoted by numbers, typically used for step-by-step guidance, ranking, or to show sequence.

Rational Appeals

Marketing strategies that use logical arguments or factual evidence to persuade consumers of the value or benefits of a product or service.

Emotional Appeals

Emotional appeals are persuasive techniques that aim to evoke an emotional response from the audience to influence their thoughts or actions.

Claim Letter

A formal letter sent to a company or individual, asserting one's right to request a correction, refund, or compensation for unsatisfactory goods or services.