Which of the Following Is TRUE in Regards to a Limited

question 85

Multiple Choice

Which of the following is TRUE in regards to a limited liability company?

• A)It is organized as a corporation.
• B)It can elect to be taxed as a partnership.
• C)It provides tax and liability advantages to the owners.
• D)All are correct.

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Definitions:

Earnings Per Share

A financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the company.

Dividends

A distribution of a portion of a company's earnings to its shareholders, usually determined by the board of directors.

Operating Activities

Cash flows directly related to the production and delivery of a company's goods and services.