Which of the Following Is True of a Limited Liability

question 91

Multiple Choice

Which of the following is true of a limited liability company?

• A)A limited liability company is not obligated to file the articles of organization with the state.
• B)The owners of a limited liability company are personally liable for the business's debts.
• C)A limited liability company can elect not to pay business income tax.
• D)The owners of a limited liability company cannot participate actively in management of the business.

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Definitions:

Interpretive Efficiency

The ability to quickly and accurately understand or make sense of information and situations.

Fundamental Attribution Error

The tendency for people to over-emphasize personality-based explanations for behaviors observed in others while under-emphasizing situational explanations.

Actor-Observer Difference

A tendency to attribute one's own actions to situational factors while attributing others' actions to their dispositions.

Similar-To-Me Effect

A bias where individuals are more favorable towards others who they perceive as similar to themselves in some manner.