Which of the Following Is an Advantage of a Limited

question 115

Multiple Choice

Which of the following is an advantage of a limited liability company compared to a partnership?

• A)Unlike a partnership, the members of a limited liability company can participate actively in management of the business.
• B)Unlike a partnership, the members of a limited liability company are not personally liable for the business's debts.
• C)Unlike a partnership, the members of a limited liability company are taxed at the business level and not double-taxed.
• D)Unlike a partnership, the members of a limited liability company need not file articles of organization with the state.

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Definitions:

Economic Order Quantity

A formula used to determine the optimal order size that minimizes the sum of ordering, holding, and stockout costs.

Optimal Batch Size

The most efficient quantity of items to produce in a single batch, minimizing the total costs associated with setup, holding, and production.

Freshness

The quality of being recently made or obtained, which is especially important in the context of perishable goods.

Artisanal Bread

Bread that is crafted in small batches using traditional methods and often featuring high-quality, locally sourced ingredients.