Which of the Following Statements Regarding Limited Liability Companies Is

question 22

Multiple Choice

Which of the following statements regarding limited liability companies is true?

• A) Just like S corporations, C corporations cannot be owners of an LLC.
• B) Just like an S corporation, an LLC is restricted to 100 members.
• C) Because LLCs are a relatively new organizational form, many tax questions concerning their operation have yet to be resolved.
• D) Just like a limited partnership, only LLC members who are not actively involved in the entity's business activities have limited liability for the LLC's debts.

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