Which of the Following Is NOT True About a Limited

question 20

Multiple Choice

Which of the following is NOT true about a limited liability company?

• A) It is a noncorporate business organization.
• B) It may elect not to be a separate taxable entity.
• C) An ownership interest may be considered a security.
• D) In most states, an LLC must have at least two members.

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Definitions:

Alcohol Abuse

The excessive or inappropriate consumption of alcohol, leading to negative impacts on health, social life, and/or occupational functioning.

Poor Judgment

The tendency to make decisions or take actions that are not well considered or wise, often leading to unfavorable outcomes.

Wishful Thinking

The formation of beliefs based on what is desired to be true rather than on evidence, reality, or rationality.

Mood Swings

Rapid and often extreme fluctuations in emotional state, ranging from euphoria to despair.