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:

Employees

Individuals who are hired by a company or organization to perform specific duties in exchange for compensation, such as wages or salaries.

Integration

The process of combining or coordinating separate elements of an organization or system to function together effectively.

Authority

The ability to dictate actions, decide on matters, and compel adherence.

Information Flow

The transfer of information from a source to a recipient through various means of communication or channels.