A Limited Liability Company Is a Form of Business Entity

question 20

True/False

A limited liability company is a form of business entity that combines the legal benefits of the corporate form with the tax benefits of the partnership form.

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Definitions:

Progressive Tax

A tax system where the tax rate increases as the taxable income or wealth increases, meaning higher earners pay a larger percentage of their income than lower earners.

Regressive Tax

A tax system where the tax rate decreases as the amount subject to taxation increases, placing a heavier burden on lower-income earners.

Market Activity

The collective buying and selling of goods and services, including financial transactions, in an economy.

Government Activity

Actions taken by a government to influence its country's economy, including policies and programs.