The Default Tax Classification of a Limited Liability Company Having

question 13

True/False

The default tax classification of a limited liability company having two or more members, is that of a sole proprietorship.

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Definitions:

Equivalent Units

A measure used in cost accounting to express the amount of work done on incomplete units in terms of fully completed units.

Direct Materials

The raw materials that are directly used in the manufacturing of a product, which can be easily traced to the finished product.

Conversion

The process of changing or converting resources or inputs into final products or outcomes.

Indirect Materials

Any materials needed to make a product that are not directly traced to the product.