Which of the Following Statements Is Correct

question 17

Multiple Choice

Which of the following statements is correct?

• A) The number of owners of an LLC is not limited.
• B) If the LLC has three or more corporate characteristics, it will be taxed as a C corporation.
• C) An LLC can elect to be taxed as a C corporation or as a partnership.
• D) Only a. and c.
• E) a., b., and c. are correct.

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Definitions:

Brokerage Fee

A brokerage fee is a charge that a broker charges for the facilitation of transactions or services such as buying or selling stocks, real estate deals, or other financial services.

Dividend Per Share

The amount of dividend that a company pays out to each shareholder per share.

Trading Securities

Financial assets such as stocks and bonds held by an investor with the intent of selling them in the short term to profit from price fluctuations.

Unrealized Gains

Profits that have been achieved on paper due to an investment increasing in value but have not yet been cashed in by selling the asset.