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