Which of the Following Statements Is Incorrect

question 129

Multiple Choice

Which of the following statements is incorrect?

• 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 incorrect.

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Definitions:

Invested Assets

Assets acquired for the purpose of generating income through investment, rather than for use in the operations of a business.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated, indicating the efficiency of a company in converting sales into profits.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefits of an investment by its costs.

Income From Operations

Earnings generated from a company's regular, core business operations, excluding non-operational income and expenses.