Which of the Following Is Not True Regarding a Limited

question 75

Multiple Choice

Which of the following is not true regarding a limited liability company?

• A)The Code does not specifically provide for the taxation of limited liability companies.Therefore,an LLC that is taxed as a partnership must rely primarily on the tax provisions that apply to partnerships.
• B)Under the "check the box" regulations,a domestic,two-owner unincorporated business organization,such as an LLC,is taxed as a partnership unless the owners elect otherwise.
• C)An LLC offers several advantages over the S corporation,including not making the managing member of the LLC liable for self-employment taxes on his or her share of LLC income.
• D)The economic benefits of an LLC may be reduced if lenders require owners to personally guarantee LLC debts.
• E)In general,an LLC member is not personally liable for LLC debts.

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Definitions:

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A sampling technique that involves dividing the population into distinct subgroups or strata and randomly selecting samples from each stratum for research purposes.

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A tendency of survey participants to answer questions in a manner that does not accurately reflect their true feelings or opinions.