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.

---

Definitions:

Sausages

Cylinder-shaped meat products usually made from ground meat, fat, salt, and spices, often encased in a skin.

Population

The total number of individuals or entities within a specific group or geographical area, often used in statistical and demographic analysis.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that sellers are willing and able to supply.

Inverse Supply

Represents the relationship between the price of a good and the quantity of the good that producers are willing to supply, shown as the price as a function of quantity.