One disadvantage of a limited liability company is that it:
A)Requires all earnings of the business be taxed at the corporate rate.
B)Has a limited life span.
C)Requires the owners to divide up profits and losses in a fixed proportion.
D)Has a more restrictive ownership requirement than S corporations.

Question

Quizplus · Accepted Answer

A limited liability company has a limited life span, meaning that it will dissolve upon the death or bankruptcy of any of its members. This can make it difficult to attract investors who may not want to commit to a business with a potentially short lifespan.

One Disadvantage of a Limited Liability Company Is That It