A Limited Liability Company ________

question 82

Multiple Choice

A limited liability company ________.

• A)is similar to an S corporation in that it is a cross between a partnership and a corporation
• B)prevents owners who want to maintain their limited liability status from actively managing the company
• C)can have a maximum of 50 owners
• D)All of the above

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Definitions:

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn reduces its price but not the total market capitalization.

Total Market Value

The aggregate value of a company or an asset in the marketplace, based on current prices and the total number of shares or units outstanding.

Stock Split

A corporate action where a company divides its existing stock into multiple shares to boost the liquidity of the shares.

Shares Outstanding

The cumulative amount of a company's shares that have been approved, distributed, and acquired by shareholders and currently possessed by them.