Which of the Following Is a Not True About an LLC

question 52

Multiple Choice

Which of the following is a not true about an LLC?

• A)LLCs are not required to have a general partner.
• B)LLC members can participate in the management of the business.
• C)Taxable income and losses pass through to the owners.
• D)An LLC must have at least two members.

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Definitions:

Financial Crisis

A situation where the value of financial institutions or assets drops rapidly, often leading to a loss of wealth and the collapse of markets.

Wall Street

Refers to the financial district of New York City, known as a major center for the world's financial markets.

Overconfidence Effect

A cognitive bias where an individual's subjective confidence in their judgements is reliably greater than their objective accuracy, especially when confidence is relatively high.

Judgments

Legal decisions made by a court regarding the rights and liabilities of parties in a legal action or proceeding.