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:

Jointly Controlled Entities

Businesses owned and operated by two or more parties who share control and decisions, typically structured through contractual arrangements.

Contractual Agreement

This is a legally binding agreement between two or more parties with mutual obligations, often delineated in a document.

Tenants in Common

A form of co-ownership where each owner has an individual, undivided interest in the property, and upon death, their share passes to their estate rather than the other co-owners.

Strategic Financial

Involves the management of a company's finances with the aim to achieve its short-term and long-term goals using strategic planning and analysis.