Which of the Following Is False Regarding Limited Liability Companies

question 24

Multiple Choice

Which of the following is false regarding limited liability companies?

• A)The limited liability company was first recognized in Wyoming.
• B)Limited liability companies have the limited liability of partnerships yet must be taxed like corporations.
• C)Limited liability companies must file a form with a state agency.
• D)The company name must include "Limited Liability Company" or an abbreviation of those words.
• E)Owners of a limited liability company are referred to as members.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers where no single entity can dictate prices.

Average Revenue

The amount of revenue a company receives per unit of output sold, calculated by dividing total revenue by the quantity of goods or services sold.

Marginal Revenue

Additional income received from selling one more unit of a product or service.

Total Revenue

The total amount of money a firm receives from its sales of goods or services, calculated by multiplying the price per unit by the number of units sold.