A Business Entity Operated and Taxed Like a Partnership,but with Limited

question 28

Multiple Choice

A business entity operated and taxed like a partnership,but with limited liability for the owners,is called a:

• A) limited liability company.
• B) general partnership.
• C) limited proprietorship.
• D) sole proprietorship.
• E) corporation.

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Definitions:

Legal Consequences

are the outcomes that follow from the application of the law, such as penalties for breaking the law or the results of legal judgments.

Liable

Responsible by law; legally obligated to compensate for harm or damage caused.

Contract

A contract recognized by law, involving at least two parties, each with obligations to the other.

Principal

The original amount of money invested or loaned, before interest, or the primary party engaged in a contract or transaction.