Which of the Following Is True About an LLC

question 41

Multiple Choice

Which of the following is true about an LLC?

• A)The structure of management must adhere to statutory constraints.
• B)Generally,each member may be allowed to participate in the management of the company
• C)Members are not equally involved in the management of the company.
• D)To obtain limited liability,owners must give up some of their rights to participate in management.
• E)Owners are referred to as partners.

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Definitions:

Single-Index Model

A pricing model that describes the return of a security as a function of a single market index and unique factors specific to that security.

Risk-Free Rate

A theoretical return on investment with no risk of financial loss, typically represented by the returns on the most secure government securities.

Market Index

A statistical measure that tracks the performance of a specific basket of stocks or assets to represent a segment of the financial market.

Beta

A metric that measures the volatility of an investment relative to the overall market's volatility.