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Which of the Following Statements Is True of Limited Liability

Question 26

Multiple Choice

Which of the following statements is true of limited liability company?


A) Limited liability company is no more costly to form than sole proprietorships.
B) Like a corporation, an LLC provides limited liability for the people who make the business decisions in the firm while enabling all investors to retain the tax advantages of a limited partnership.
C) The lives of limited liability company are not flexible.
D) Limited liability company is more constrained than general partnerships because they can raise money only from members.

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