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:

Bedwetting

Involuntary urination while asleep after the age when bladder control usually occurs, clinically known as nocturnal enuresis.

Sleep Terrors

A sleep disorder causing feelings of terror or dread, and typically involving screaming, flailing, or panic during sleep.

Panic

An intense, sudden fear or anxiety that can result in extreme and often irrational behavior or decisions.

Awakens

Refers to the process of coming into awareness or becoming conscious of something that was previously unknown or unrecognized.