Limited Liability Companies (LLCs) Differ from Limited Partnerships in That

question 75

Multiple Choice

Limited liability companies (LLCs) differ from limited partnerships in that

• A) Owners of the LLC are subject to double taxation.
• B) Owners of the LLC have unlimited liability for the firm's debt.
• C) Owners of the LLC are not liable for the firm's debt.
• D) Owners of the LLC may not exceed 12 in number.

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Definitions:

Atom

The smallest unit of a chemical element, consisting of a nucleus surrounded by electrons.

Electricity

The flow of electrons from a source of higher electrical potential to a source of lower electrical potential through a conductor.

12-Volt Circuit

An electrical pathway that operates at 12 volts, commonly found in automotive electrical systems.

6-Ohm Resistor

An electronic component that opposes the flow of electrical current, with a resistance value of six ohms.