Which of the Following Is True of a Limited Liability

question 141

Multiple Choice

Which of the following is true of a limited liability corporation?

• A) It is commonly identified by the "Inc." designation in a name.
• B) It consists of a general partner and one or more "limited" partners who do not participate in day-to-day business management.
• C) The business owner is personally liable for business debts and claims.
• D) For tax purposes, it functions as a sole proprietorship in the case of a single owner.
• E) It involves the owners going into debt by borrowing money from another person, bank, or financial institution.

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Definitions:

Radical

A term often used to describe individuals, groups, or ideas that advocate for thorough or complete political or social reform.

American Politics

The political activities, policies, and structure within the United States, including government operation and election processes.

Impact

The strong effect or influence that one thing has on another, often used in contexts ranging from social and environmental to economic.