Which of the Following Is an Advantage of a Limited

question 127

Multiple Choice

Which of the following is an advantage of a limited liability company compared to a corporation?

• A) Unlike a corporation, the members of a limited liability company are personally liable for the business's debts.
• B) Unlike a corporation, the members of a limited liability company need not file articles of organization with the state.
• C) Unlike a corporation, the members of a limited liability company cannot participate actively in management of the business.
• D) Unlike a corporation, the members of a limited liability company are taxed at the individual level only.

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Definitions:

Floating Exchange Rates

A currency valuation system in which exchange rates are determined by the free market forces of supply and demand without direct intervention by national governments.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

Brazilian Real

The official currency of Brazil, symbolized as R$ and denoted by the ISO code BRL.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.