Which of the Following Is True for a Limited Liability

question 63

Multiple Choice

Which of the following is true for a Limited Liability Company (LLC) ?

• A) Business income is taxed at the corporate rate.
• B) The owners have unlimited liability.
• C) The company is limited in its liability.
• D) Business income is taxed at the individual's personal rate.
• E) None of the above.

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Definitions:

Elasticity of Demand

An indicator of the responsiveness of the quantity of a good demanded to its price alterations, showing how sensitive buyers are to changes in its cost.

Tax Burden

The total amount of taxes paid by individuals or businesses relative to their income, often discussed in the context of debates over fairness and economic policy.

Elastic

Describes a situation in which the demand or supply for a good or service changes significantly when its price changes.

Inelastic

A situation in which the demand or supply for a product does not change significantly in response to price changes.