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:

Output Levels

Refers to the quantity of goods or services produced by a company or economy over a certain period.

Returns to Scale

The rate at which production output increases as a result of a proportional increase in all inputs.

Isoquants

Curves that represent combinations of different inputs that yield the same output, used in production theory to analyze input choices.

Inputs

The resources used in the production process to produce goods or services, including labor, materials, and capital.