Limited liability companies are unable to offer stock options or stock bonus incentives to their employees because ________.
A) benefits such as these are too costly for these types of start-up companies
B) extra profits are reinvested into the company, not into company stocks
C) limited liability companies do not have shareholders or stock
D) approval of stock benefits is difficult due to the number of members
E) LLC members are limited to just U.S. residents

Question

Quizplus · Accepted Answer

Limited liability companies do not have shareholders or stock, which is necessary for the implementation of stock options or stock bonuses. Instead, LLC members have ownership interests in the company, and any profits are distributed among them according to the members' percentage ownership.

Limited Liability Companies Are Unable to Offer Stock Options or Stock