When Genna confided in Lou and Al that she too was concerned about adding additional risk, Lou suggested that they explore the possibility of a different type of business ownership, a(n) ________, which has very flexible ownership rules and would give them more choices in how the company's earnings are taxed while still protecting all owners from high levels of risk.
A) alien corporation
B) master limited partnership
C) limited partnership
D) limited liability company

Question

Quizplus · Accepted Answer

Limited liability companies offer the protection of limited liability, but allow the company a great deal of flexibility in how the earnings of the business are taxed. In many cases, the company will choose to have its earnings taxed as if it were a partnership, thus avoiding the problem of double taxation. However, the company can also choose to have its earnings taxed as a corporation if that is more advantageous.

When Genna Confided in Lou and Al That She Too