Which of the Following Statements Is False Regarding Limited Liability

question 82

Multiple Choice

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

• A) Members need not be citizens of the U.S.
• B) Limited liability companies have the limited liability of corporations yet may be taxed like partnerships.
• C) A limited liability company is formed by filing articles of organization in the state in which members want to establish their LLC.
• D) For purposes of jurisdiction, an LLC is considered a citizen of every state in which its members reside.
• E) Owners of an LLC are referred to as incorporators.

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Definitions:

Marginal Product Data

Information that shows how the addition of a single unit of a factor of production, such as labor or capital, affects total output.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product for which each supplier's offerings are perfectly substitutable by the consumers.

Profit-Maximizing Rule

A principle stating that firms achieve maximum profit when they produce goods or services to the point where marginal cost equals marginal revenue.

Cost-Minimization Rule

A principle in economics that suggests a firm should produce any given output at the lowest possible cost.