Which of the Following Is True of a Limited Liability

question 44

Multiple Choice

Which of the following is true of a limited liability company (LLC) ?

• A) It cannot sue or be sued in its own name.
• B) Investors of an LLC are able to share in management.
• C) Members are personally liable for the wrongful acts of other members.
• D) It cannot have more than 100 members.

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Definitions:

FICA

The Federal Insurance Contributions Act, a U.S. law that mandates a payroll tax on both employees and employers to fund Social Security and Medicare.

Monthly Wage Base

The total amount of money earned by an employee in a month before deductions.

Collective Bargaining Agreement

A contract negotiated by an employer and a labor union that covers all issues related to employment.

OSHA

The Occupational Safety and Health Administration, a U.S. government agency responsible for ensuring safe and healthy working conditions.