Which of the Following Is a Disadvantage of an LLC

question 39

Multiple Choice

Which of the following is a disadvantage of an LLC?

• A)For security law purposes, an ownership interest in an LLC is not necessarily a security.
• B)There is no general partner requirement.
• C)Taxable income and losses pass through to the owners.
• D)The states are not uniform in their treatment of limited liability companies.

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Definitions:

Settlement

An agreement between parties in a dispute to resolve their case without going to trial.

Dispute

A disagreement or argument between parties, often requiring resolution through legal or formal means.

Litigation File

A collection of documents related to a legal case, including pleadings, motions, evidence, and correspondence, maintained by an attorney or law firm.

Civil Trial

A legal proceeding that resolves disputes between individuals or entities over rights, responsibilities, and obligations without involving criminal sanctions.