According to the textbook, the limited liability company combines the limited liability advantage of the ________ with the tax advantages of the ________.
A) partnership, sole proprietorship
B) corporation, sole proprietorship
C) corporation, partnership
D) sole proprietorship, corporation
E) partnership, corporation

Question

Quizplus · Accepted Answer

The limited liability company (LLC) combines the limited liability advantage of the corporation with the tax advantages of the partnership. Therefore, option C, which pairs corporation and partnership, is the correct answer. Option A, which pairs partnership and sole proprietorship, does not accurately represent the advantages of an LLC, as a sole proprietorship does not offer limited liability. Option B, which pairs corporation and sole proprietorship, is also incorrect, as a sole proprietorship does not offer limited liability. Option D, which pairs sole proprietorship and corporation, is incorrect for the same reason as option B. Option E, which pairs partnership and corporation, is incorrect because it does not accurately represent the tax advantages offered by an LLC.

According to the Textbook, the Limited Liability Company Combines the Limited