An LLC

question 1

Multiple Choice

An LLC:

• A) offers principals the same liability coverage as principals in corporations with taxation at the business entity level.
• B) offers principals the same liability coverage as principals in corporations with pass through taxation.
• C) offers principals the same liability coverage as general partners in a partnership with taxation at the business entity level.
• D) offers principals the same liability coverage as limited partners in a partnership with pass through taxation

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Definitions:

Liquidity Ratios

Financial metrics used to evaluate a company's ability to pay off its short-term liabilities with its liquid assets.

Current Assets

Financial assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Current Liabilities

Short-term financial obligations due within one year or within the company's operating cycle.

Asset Management Ratios

Financial metrics used to assess how efficiently a company manages its assets to generate revenue.