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:

Basic Conditioning Principles

The foundational rules of learning through association, including classical and operant conditioning, which explain how behaviors are acquired or modified.

Heredity

Heredity is the transmission of traits and characteristics from parents to offspring through genes, influencing various aspects of an individual's physical appearance and behavior.

Laboratory Animals

Animals used in experimental research to study biological, psychological, or medical processes and phenomena, often within controlled settings.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.