Which of the Following Statements About a Limited Liability Company

question 55

Multiple Choice

Which of the following statements about a limited liability company is correct?

• A)A limited liability company with more than one owner can elect to be classified as either a partnership or a proprietorship.
• B)A limited liability company with only one owner can elect to be classified as either a proprietorship or a corporation.
• C)If a limited liability company does not make an election under the "check-the-box" regulations, multi-owner entities are classified as corporations.
• D)If a limited liability company does not make an election under the "check-the-box" regulations, single-person entities are classified as corporations.
• E)None of the above.

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Definitions:

Break-even Price

The price level at which the revenues for a product or service equal the costs, resulting in neither profit nor loss.

Markdown

A reduction from the original or previous retail price of a product.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Marked Up

Refers to the percentage increase in the price of a good or service over its original cost to achieve a profit.