Which of the Following Is Not True of a Limited

question 42

Multiple Choice

Which of the following is not true of a limited liability partnership?

• A)All partners are limited partners.
• B)Most states restrict this form of ownership to certain types of professions such as attorneys, physicians, dentists, accountants, etc.
• C)Although LLPs have many of the characteristics of partnerships, they are taxed as a corporation.
• D)It must involve a general partner, a limited partner, a silent partner, and a dormant partner.

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Definitions:

Direct Supervision

A management approach where a supervisor directly oversees and controls the work activities of employees.

Sole Proprietor

A business owned and operated by a single individual, where the owner is personally responsible for the business's debts.

Initial Investment

The amount of money used to start a new business venture, project, or investment.

Natural Resources

Raw materials and components found in the environment that can be used for economic gain, such as minerals, forests, water, and land.