Which of the Following Is True of a Limited Liability

question 141

Multiple Choice

Which of the following is true of a limited liability corporation?

• A) It is commonly identified by the "Inc." designation in a name.
• B) It consists of a general partner and one or more "limited" partners who do not participate in day-to-day business management.
• C) The business owner is personally liable for business debts and claims.
• D) For tax purposes, it functions as a sole proprietorship in the case of a single owner.
• E) It involves the owners going into debt by borrowing money from another person, bank, or financial institution.

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