Which of the Following Is Not True of a Limited

question 42

Multiple Choice

Which of the following is not true of a limited liability partnership?

• A)All partners are limited partners.
• B)Most states restrict this form of ownership to certain types of professions such as attorneys, physicians, dentists, accountants, etc.
• C)Although LLPs have many of the characteristics of partnerships, they are taxed as a corporation.
• D)It must involve a general partner, a limited partner, a silent partner, and a dormant partner.

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Definitions:

Economically Efficient

A condition in which a system optimizes the allocation of resources, producing the maximum number of goods and services with the least waste.

Entrepreneurial Ability

The skillset that enables individuals to recognize business opportunities, innovate, undertake risks, and manage businesses effectively.

Production Techniques

The methods and processes used by firms to produce goods or deliver services, including all aspects from initial design to final output.

Economic Loss

A situation where revenues from business activities are less than the expenses and costs associated with sustaining the business.