Meaning of limited liability company - SS1 Commerce Past Questions and Answers - page 1
1
What does limited liability mean in the context of a limited liability company (LLC)?
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A
The owners have unlimited personal liability for the company's debts and obligations.
B
The owners have limited personal liability for the company's debts and obligations.
C
What does limited liability mean in the context of a limited liability company (LLC)?
2
What is the main advantage of a limited liability company (LLC)?
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A
Unlimited personal liability for the owners.
B
Simplicity in management and taxation.
C
Easy access to funding and capital.
3
Which of the following business structures provides limited liability protection?
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A
Sole proprietorship.
B
General partnership.
C
Limited liability company (LLC).
4
In an LLC, the liability of the members is limited to:
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A
Their personal assets.
B
Their investment in the company.
C
The company's profits.
5
What type of taxation does an LLC typically have?
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A
Pass-through taxation.
B
Double taxation.
C
Corporate taxation.
6
What does limited liability mean in the context of an LLC?
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7
Name one advantage of forming a limited liability company (LLC).
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