A limited liability company (LLC):
A) must register with the SEC to sell securities to the public
B) is an ongoing entity, even if one of the owners leaves
C) has a limited number of shareholders
D) limits financial exposure of its owners

Question

Quizplus · Accepted Answer

A limited liability company (LLC) limits the financial exposure of its owners, meaning that they are not personally liable for the company's debts and obligations. The other options are incorrect because an LLC does not need to register with the SEC to sell securities to the public (that is typically only required for corporations), is not required to have a limited number of shareholders, and is not necessarily an ongoing entity if one of the owners leaves (it depends on the terms of the LLC's operating agreement).

A Limited Liability Company (LLC)