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
C
Explanation: C) LLCs are attractive to many new business owners because they are simpler to maintain than corporations; however, one drawback is that limited liability companies are unable to offer certain fringe benefits to members. Furthermore since they do not issue stock, LLCs cannot offer stock options to employees.
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A company's total liabilities divided by its total stockholders' equity is called the:
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The Bureau of Consumer Financial Protection is the new federal agency for consumer rights that is located within the Federal Reserve
Indicate whether the statement is true or false
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