Which of the Following Statements Is TRUE for a Limited

question 34

Multiple Choice

Which of the following statements is TRUE for a limited liability company?

• A)Members have unlimited liability for the debts of the business.
• B)Members have limited liability for debts only up to the extent of their investment in the LLC.
• C)Only the limited partners have limited liability for the debts of the business.
• D)Members are not taxed like members of a partnership.

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Definitions:

Ingroup

Ingroup refers to a social group to which a person psychologically identifies as being a member.

Outgroup

A social group to which an individual does not identify or belong, often viewed with bias or prejudice.

Minimal Groups

Experimental groups created with minimal conditions for group membership, used to study the basic conditions required for discrimination or group identification to occur.

Tajfel

A reference to Henri Tajfel, a social psychologist known for his work on social identity theory and intergroup dynamics.