Which of the Following Is True About Choosing a Limited

question 65

Multiple Choice

Which of the following is true about choosing a limited liability company form of ownership?

• A)It has no disadvantages except its newness.
• B)It is ideal for a new company but difficult to convert to with an existing company.
• C)It is inexpensive,easy to form,and covered by little regulation due to its newness.
• D)It's an excellent conversion vehicle for existing businesses that are suffering from double taxation but problematic for sole proprietorships.

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Definitions:

Private Practice

A business, particularly in professions such as law, medicine, or psychology, operated by one or more individuals outside of a hospital or institutional setting.

Confidential Information

Sensitive data that is protected from unauthorized access to safeguard privacy or secrecy.

Boundaries

Limits or borders that define the space within which actions occur or the extent of acceptable behavior.

Competence

Refers to the ability of an individual or organization to effectively perform or carry out a specific task or role.