Which of the Following Is True of a Limited Liability

question 43

Multiple Choice

Which of the following is true of a limited liability company (LLC) ?

• A) It is a relatively old business structure.
• B) It fails to provide management flexibility.
• C) Membership of LLCs is limited to individuals.
• D) LLCs with only one owner are permitted in some states.
• E) Banks and insurance companies can be LLCs.

---

Definitions:

Monopolists

Entities or firms that have exclusive control over the market for a particular good or service, thereby eliminating competition.

Consumers

Individuals or organizations that use economic goods and services for their own personal benefit or to meet their needs.

Net Loss

The amount by which total expenses exceed total revenues in a specific period, indicating a negative financial performance.