Identify a True Statement About a Limited Liability Company (LLC)

question 61

Multiple Choice

Identify a true statement about a limited liability company (LLC) .

• A) A limited liability company (LLC) has a maximum of 100 stockholders.
• B) A limited liability company (LLC) offers the limited personal liability associated with a corporation.
• C) A limited liability company (LLC) has only one type of stock (membership interest).
• D) A limited liability company (LLC) is taxed as a partnership and the stockholders are subject to double taxation.
• E) A limited liability company (LLC) is liable for the negligence, irresponsibility, or similar acts committed by any partner.

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Definitions:

Federal Law

Laws passed by the national legislature of a country, applicable throughout the country.

Dishonored Check

A check that a bank refuses to pay, usually because the account holder does not have enough funds.

Provisional Credit

Temporary credit issued by a bank to an account holder, often while disputes or errors are being resolved.

Dishonor

In finance, the refusal or inability of a drawee of a negotiable instrument to pay the amount due upon presentment.