Which of the Following Is/are Correct with Respect to Limited

question 20

Multiple Choice

Which of the following is/are correct with respect to limited liability companies (LLCs) ?
I.An advantage of an LLC when compared to a regular corporation is the ability to pass through tax attributes to owners.
II.A disadvantage of a general partnership when compared with an LLC is the inability of owners to have limited liability.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

FIFO Method

A method of inventory valuation where the first items placed in inventory are the first ones sold, standing for First-In, First-Out.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period.

Spark Plugs

An engine component that ignites the fuel-air mixture in the combustion chamber of gasoline engines.

Market Value

The current quoted price at which an asset or a company can be bought or sold in a marketplace.