Which of the Following Statements Regarding Limited Liability Companies Is

question 2

Multiple Choice

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

• A) Every member of an LLC has limited liability for the LLC's debts.
• B) An LLC with only one member is generally treated as a corporation for income tax purposes.
• C) An LLC with more than one member is generally treated as a partnership for income tax purposes.
• D) State laws do not limit the number of members or the type of entity that can be a member in an LLC.

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Definitions:

Personal Matter

An issue or situation that pertains exclusively to an individual's private life, often unrelated to their professional responsibilities.

Government Scrutiny

The investigation or close examination by governmental bodies into the practices, activities, and policies of individuals, organizations, or industries.

On-line Pharmacy

A platform that allows customers to order and purchase medications and health-related products over the internet.

Issues Management

The proactive process of identifying, evaluating, and dealing with issues that affect an organization, potentially becoming public controversies.