Which of the Following Is/are Correct with Respect to Limited

question 20

Multiple Choice

Which of the following is/are correct with respect to limited liability companies (LLCs) ?
I.An advantage of an LLC when compared to a regular corporation is the ability to pass through tax attributes to owners.
II.A disadvantage of a general partnership when compared with an LLC is the inability of owners to have limited liability.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Delegation

means to transfer authority or responsibility to another person to carry out specific activities.

Assignee

The party to whom rights or interests are transferred by another, often used in context of contracts, leases, or other agreements.

American Rule

A legal principle stating that each party in a lawsuit is responsible for paying its own attorney fees, except as otherwise provided by statute or contract.

English Rule

A legal principle where the losing party in litigation is required to pay the legal costs of the winning party.