Which of the Following Statements Is NOT True Regarding a Limited

question 60

Multiple Choice

Which of the following statements is NOT true regarding a limited liability company?

• A) There is no loss of power to board of directors.
• B) The members of the company face the double taxation issue.
• C) The company exists as a legal entity separate from its owners.
• D) It can be set up with one person which can be an entity.

Appreciate the importance of effective control processes and measurements for organizational success.

Understand the control process steps and the principles of management by exception.

Understand the components and purposes of various financial statements such as the Statement of Cash Flows and the Balance Sheet.

Recognize the categorization of cash flows in the Statement of Cash Flows.

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Definitions:

Reactive

Refers to a response or behavior that is made in reaction to an event or situation rather than initiating change proactively.

Sustainability Strategies

Long-term plans aimed at incorporating ecological, economic, and social considerations into business operations to ensure sustainability.

Economic Terms

Language and concepts used to describe the operations of economies, including aspects like inflation, GDP, and fiscal policy.

Corporate Accountability

The responsibility of companies to be answerable for their actions, ensuring ethical conduct, compliance with regulations, and positive impact on society.