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)?

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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.

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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).

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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.

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5

What type of taxation does an LLC typically have?

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A

Pass-through taxation.

B

Double taxation.

C

Corporate taxation.

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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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