_____ Is a Choice LLCs Can Make on Their Tax

question 98

Multiple Choice

_____ is a choice LLCs can make on their tax returns to be taxed as a corporation or a partnership.

• A) Check the box taxation
• B) Double taxation
• C) Pass through taxation
• D) Single taxation

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Definitions:

Fixed Overhead

Recurring operating expenses that remain relatively constant regardless of the level of production or business activity.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Inventory

Products and items that a company keeps with the final intention of selling or further processing.

Special Order

A unique, one-time order or request from a customer, often requiring customized production or handling outside of regular operations.