Which of the Following Is Not a Characteristic of an LLC

question 4

Multiple Choice

Which of the following is not a characteristic of an LLC?

• A) May elect to be taxed as a corporation.
• B) Usually capitalized via debt.
• C) Its members are not personally liable for any business debt or liability.
• D) Only its managing members owe a fiduciary duty to other members.

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Definitions:

Transferring Ownership

The process of legally moving the title of an asset or property from one entity or individual to another.

Stockholders' Equity

The remaining value of a company's assets after all debts have been subtracted, symbolizing the equity stake of its shareholders.

Treasury Stock

Shares that were issued and subsequently reacquired by the company itself, reducing the amount of outstanding stock on the open market.

Common Stock

An ownership stake in a corporation, represented through a security known as corporate equity ownership.