Which of the Following Statements Regarding Limited Liability Companies Is

question 56

Multiple Choice

Which of the following statements regarding limited liability companies is true?

• A)Just like an S corporation,an LLC member's share of ordinary income is not subject to self-employment taxes.
• B)Just like an S corporation,an LLC is restricted to 100 members.
• C)Because LLCs are a relatively new organizational form,many tax questions concerning their operation have yet to be resolved.
• D)Just like a limited partnership,only LLC members who are not actively involved in the entity's business activities have limited liability for the LLC's debts.

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Definitions:

Bethlehem Hospital

Historically known as Bedlam, it is one of the world's oldest hospitals for the treatment of mental illness, founded in London in the 13th century.

"Bedlam"

Historically, a term associated with the Bethlem Royal Hospital in London, now colloquially used to describe a scene of chaos or madness.

Deplorable Conditions

Extremely bad or unpleasant situations or environments, often referring to living conditions that are not fit for human inhabitation.

Moral Treatment

A 19th-century approach to mental illness focusing on humane treatment, moral discipline, and the therapeutic benefits of nature and physical work.