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Which is a more efficient mechanism for allocating capital among different businesses: the internal capital allocation of diversified firms or the external capital market?
Limited Liability Company
A commercial foundation that unifies a corporation's limited liability with the direct tax benefits characteristic of partnerships or sole proprietorships.
Tax Election
A choice allowed under tax law that enables taxpayers to determine how they want certain tax rules to apply to them.
Member-Managed
Pertains to an organizational structure, typically in LLCs, where all members participate directly in decision-making and management activities.
Majority Vote
A decision-making process where the option that receives more than half of the votes is chosen.
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