Which of the Following Statements Is Incorrect About LLCs and the Check-The-Box

question 55

Multiple Choice

Which of the following statements is incorrect about LLCs and the check-the-box Regulations?

• A) If an LLC with more than one owner does not make an election, the entity is taxed as a corporation.
• B) All 50 states have passed laws that allow LLCs.
• C) An entity with more than one owner and formed as a corporation cannot elect to be taxed as a partnership.
• D) If an LLC with one owner does not make an election, the entity is taxed as a sole proprietorship.
• E) An LLC with one owner can elect to be taxed as a corporation.

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Definitions:

Entropy Term

A thermodynamic quantity representing the degree of disorder or randomness in a system, significant in predicting the spontaneity of processes.

ΔG°

Standard Gibbs free energy change, a thermodynamic quantity indicating the spontaneity of a reaction at standard conditions; negative values suggest spontaneity.

Exothermic

A chemical reaction or process that releases heat to its surroundings.

Endothermic

Describes a process or reaction that absorbs energy from its surroundings, typically in the form of heat.