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

question 9

Multiple Choice

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

• A)A limited liability company (LLC) has a maximum of 100 stockholders (owners).
• 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, which means 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:

Lubrication Cost

The expense associated with maintaining machinery through oiling and greasing to ensure smooth operation.

Variable Lubrication Cost

A variable cost associated with the amount of lubrication needed for machinery in the manufacturing process, which varies with the level of production activity.

Machine Hour

A unit of measure that represents the operation of machinery or equipment for one hour, used in allocating manufacturing overhead.

Least-squares Regression

A statistical method used to determine the relationship between variables by minimizing the sum of the squares of the differences between observed and predicted values.