Which of the Following Is Not True Regarding a Limited

question 19

Multiple Choice

Which of the following is not true regarding a limited liability company?

• A) The Code does not specifically provide for the taxation of limited liability companies. Therefore, an LLC that is taxed as a partnership must rely primarily on the tax provisions that apply to partnerships.
• B) An LLC is effectively treated as a limited partnership with no limited partners.
• C) An LLC offers several advantages over the S corporation, including not making the managing member of the LLC liable for self-employment taxes on his or her share of LLC income.
• D) In general, an LLC member is not personally liable for LLC debts.
• E) Any member of an LLC can participate in the management of the LLC if the operating agreement so permits.

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Definitions:

Urgency To Change

The perceived immediate need within an organization to adapt or modify its operations or strategy.

Change Agent

An individual or entity that acts as a catalyst for change, facilitating, enabling, and often driving the change process within organizations or communities.

Diffusion

Diffusion is the process by which an innovation, idea, or trend spreads through a population or social system.

Appealing Vision

A strategic and inspiring goal or scenario that motivates individuals or groups towards its realization.