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.

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Definitions:

Output

The total amount of something produced by a person, machine, or industry.

Returns To Scale

An economic concept describing how output changes in response to a proportional change in all inputs; indicating constant, increasing, or decreasing returns to scale.

Production Function

A mathematical equation that describes the maximum amount of output that can be obtained from a given set of inputs.

Output

The amount of goods or services produced by a business, industry, or economy in a given period.