Which of the Following Represents a Difference Between an S

question 16

Multiple Choice

Which of the following represents a difference between an S corporation and a limited liability company (LLC) ?

• A)An S corporation can have more than one type of stock outstanding, whereas an LLC can have only one type of stock outstanding.
• B)An S corporation can choose to be taxed as a corporation or as a partnership, whereas an LLC is taxed as a corporation only.
• C)An S corporation is subject to unlimited personal liability of the owners, whereas an LLC is subject to limited personal liability.
• D)An S corporation has no more than 100 stockholders, whereas an LLC can have more than 100 owners (members).
• E)An S corporation's business income is subject to double taxation, whereas an LLC's business income is taxed only once.

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Definitions:

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services.

Indirect Manufacturing Cost

Costs not directly associated with the production of goods, including maintenance, supervision, and utility expenses.

Relevant Range

The spectrum of operations where the beliefs regarding the behavior of fixed and variable costs hold true.

Financial Reporting

Crafting statements that expose a business's financial well-being to its managers, investors, and governmental entities.