Darcy and Eigen Own and Operate a Small-Business Enterprise That

question 33

Multiple Choice

Darcy and Eigen own and operate a small-business enterprise that does not pay taxes on its profits, but distributes them to Darcy and Eigen who pay taxes on these amounts as their individual income. Darcy and Eigen's personal liability for the firm's debts and obligations is limited. This firm is

• A) a corporation.
• B) a general partnership.
• C) a limited liability company.
• D) a sole proprietorship.

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Definitions:

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