In Which of the Following Ways Is a Limited Liability

question 68

Multiple Choice

In which of the following ways is a limited liability company like a corporation?

• A)Both types of firm were created and developed first in the United States.
• B)Both can choose to be considered a partnership for tax purposes.
• C)All of its owners' liability is restricted to their investment in the firm.
• D)It is directly managed by the owners of the firm.

---

Definitions:

Finished Goods Inventory

This refers to the value of goods in a company's inventory that are completed and ready for sale.

Merchandise Inventories

Goods that a company holds for the purpose of sale in the ordinary course of business, including finished products, work in progress, and raw materials.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Monthly Expenses

Recurring costs or outlays that occur every month, such as rent, utilities, payroll, and other operational charges.