Which of the Following Statements, If Any, About a Multimember

question 5

Multiple Choice

Which of the following statements, if any, about a multimember LLC is false?

• A) A multimember LLC is usually taxed like a partnership.
• B) Members of an LLC generally have limited personal liability for debts of the LLC except for the managing member who has unlimited liability for LLC debts.
• C) Members of an LLC can participate in management of the LLC unless the member agrees not to participate.
• D) An LLC can specially allocate income items as long as the substantial economic effect rules of § 704b) are followed.
• E) All of these are true.

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Definitions:

Demonstrating Empathy

The act of showing understanding and sharing the feelings of another individual, which can facilitate communication and relationship building.

Displaying Expertise

Demonstrating or showcasing one's skills, knowledge, or proficiency in a particular area or field.

Third-Party Interventions

Involvement by an outside party to mediate, facilitate, or impose solutions in conflicts or negotiations.

Preventive ADR Systems

Stands for systems designed to prevent disputes through early resolution techniques, avoiding litigation and arbitration.