Identify Which of the Following Statements Is True

question 118

Multiple Choice

Identify which of the following statements is true.

• A)Under the check-the-box regulations, an LLC that has one member (owner)may be disregarded as an entity separate from its owner.
• B)An unincorporated business may not be taxed as a corporation.
• C)A new LLC that is owned by four members elects to be taxed under its default classification (as a partnership)in its first year of operations. The entity is prohibited from changing its tax classification at any time in the future.
• D)All of the above are false.

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Definitions:

Shopkeeper

An individual who owns or manages a small retail business.

Shoplifting

The act of stealing goods from a store or retail establishment, typically by concealing them in personal belongings or clothing.

Punitive Damages

Monetary compensation awarded in civil cases to punish the defendant and deter future similar acts.

Canadian Judicial System

The Canadian judicial system is composed of a series of courts ranging from local to Supreme Court levels, responsible for interpreting and applying the law in Canada.