A Limited Liability Company Is a Citizen of Every State

question 20

True/False

A limited liability company is a citizen of every state in which it does business.

---

Definitions:

Shareholders' Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

Financial Position

A firm's economic state, reflected by its assets, liabilities, and equity at a given moment.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing what the shareholders own outright.