Which of the Following Is True Regarding a Limited Liability

question 152

Multiple Choice

Which of the following is true regarding a limited liability company?

• A) makes up 10% of business organizations in the United States
• B) combines the attributes of a partnership and a corporation
• C) provides tax and liability advantages to the owners
• D) All of these choices

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Definitions:

Period Costs

Expenses that are not directly tied to the production of goods or services and are expensed in the period they are incurred, such as sales and administrative expenses.

Outdoor Furniture

Furniture designed for use outside the house, often made of materials resistant to weather, such as aluminum, plastic, or wood.

Casual Furniture Company

A business that specializes in creating and selling furniture designed for informal settings, typically emphasizing comfort and style.

Conversion Costs

The combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.