Which of the Following Below Is Not a Characteristic of a Limited

question 52

Multiple Choice

Which of the following below is not a characteristic of a Limited Liability Company?

• A) unlimited life
• B) limited legal liability
• C) taxable
• D) moderate ability to raise capital

---

Definitions:

Collateral

Assets pledged by a borrower to secure a loan, which can be seized by the lender if the loan is not repaid.

Security Interest

A legal claim or lien on assets which secures the performance of an obligation, usually repayment of a loan.

Present and After-Acquired Equipment

Refers to a security interest in equipment that a borrower currently owns and any equipment they will acquire in the future.

Unperfected

A legal term describing a security interest or lien that has not been properly filed or recorded, and therefore does not have priority over claims made by other creditors.