On Which Tax Form Do LLCs with More Than One

question 20

Multiple Choice

On which tax form do LLCs with more than one owner report their income and losses?

• A) Form 1120
• B) Form 1120S
• C) Form 1065
• D) Form 1040, Schedule C

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Definitions:

Economic Efficiency

A situation in which resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Market

A system or an environment where buyers and sellers interact to trade goods, services, or financial instruments.

Free-rider Problem

A situation where individuals consume goods or services without paying for them, which typically occurs with non-excludable and non-rival public goods.

Market Resources

The assets, materials, and inputs used to produce goods and services and are made available through the market.