Match Each Statement with the Correct Term Below

question 5

Multiple Choice

Match each statement with the correct term below.
-Limited Liability Company

• A)An entity with conduit tax characteristics that provides limited liability to its owners.
• B)An organization of two or more persons operating a business that is not taxed.
• C)A general partnership that offers limited liability to the partners.
• D)An association created under the laws of a state giving owners limited liability.
• E)Retains legal characteristics while obtaining tax characteristics of a conduit.
• F)A partnership in which the liability of at least one partner is limited.

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Definitions:

Shareholders' Equity

The residual interest in the assets of an enterprise after deducting liabilities, representing the ownership interest of shareholders.

Retained Earnings

The portion of net income that is kept by the company rather than distributed to its shareholders as dividends.

Contributed Surplus

The value of anything of value that is given to a company in exchange for shares, above the par value of the shares.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.