A Limited Liability Company (LLC)

question 8

Multiple Choice

A limited liability company (LLC) :

• A)is a hybrid between a sole proprietorship and a partnership.
• B)prefers its profits be taxed as personal income to its owners.
• C)that meets the IRS criteria to be an LLC will be taxed like a corporation.
• D)provides limited liability for some, but not all, of its owners.
• E)cannot be created for professional service firms, such as accountants and attorneys.

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Definitions:

Capacities

Refers to the potential or ability to perform, yield, or withstand something; often used to describe an individual's mental or physical aptitude.

Mid-Life

A period in an individual's lifespan, typically considered to be between the ages of 40 and 60, often associated with a midlife crisis.

Confrontation

The act of facing or dealing directly with issues, challenges, or opposition, often involving direct communication or conflict.

Archetypes

Universal, symbolic images and themes that derive from the collective unconscious, as proposed by Carl Jung, recurring across cultures and time periods.