Which of the Following Is False Regarding a Limited Liability

question 74

Multiple Choice

Which of the following is false regarding a limited liability partnership?

• A) A limited liability partnership is considered a separate legal entity.
• B) Limited liability partnerships are fairly new.
• C) The business name must include "Limited Liability Partnership" or an abbreviation in the name.
• D) The parties must file a form with the secretary of the state to create a limited liability partnership.
• E) Each partner pays taxes on his or her share of the income of the business.

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Definitions:

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life.

Book Value

The net value of an asset as recorded on the balance sheet, calculated as the original cost minus accumulated depreciation or amortization.

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price, either positive (gain) or negative (loss).

Trade-In Allowance

The amount a seller allows a buyer for a fixed asset that is traded in for a similar asset.