Which of the Following Statements Is False Regarding Limited Liability

question 41

Multiple Choice

Which of the following statements is false regarding limited liability companies?

• A)Owners of an LLC are referred to as incorporators.
• B)Limited liability companies have the limited liability of corporations yet may be taxed like partnerships.
• C)Members need not be citizens of the U.S.
• D)For purposes of jurisdiction,an LLC is considered a citizen of every state in which its members reside.
• E)A limited liability company is formed by filing articles of organization in the state in which members want to establish their LLC.

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Definitions:

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or made more likely to occur again by rewards or consequences.

Groupthink

A mental effect that happens among a group when their need for agreement or uniformity leads to choices that are illogical or ineffective.

Group Polarization

A group's propensity to make choices that are further to the extreme compared to the initial leanings of the individuals in the group.

Jurors' Opinions

The personal judgments or beliefs held by members of a jury, which may influence their decision in a legal trial.