A disadvantage of a limited liability company is that it ________
A) requires earnings to be taxed at the corporate rate
B) must dissolve when an owner leaves the company
C) requires the division of profits in a fixed proportion
D) has more restrictive ownership rules than S corporations
E) is required to hold annual meetings
B
Explanation: B) Unlike corporations, when an owner leaves an LLC, the LLC must dissolve. Some states also require that a dissolution date be listed in the articles of organization, so an LLC has a limited life span.
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An auditor is not required to tell the reader of an audit report when there has been a change in accounting principles that materially affects the financial statements
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The balance sheet shows why cash increased or decreased. 2. The statement of cash flows shows where cash came from and how cash was spent. 3. The statement of cash flows is dated the same as the balance sheet. 4. The statement of cash flows explains why net income as reported on the income statement does not equal the change in the cash balance.
Which social entrepreneur helped improve the transport of farmers’ goods to markets in Ghana?
A. Bill Gates B. Richard Seshie C. Gerald Chertavian D. Diana Propper de Callejon
U.S. GAAP and IFRS view investments of between 20% and 50% of the voting stock of another company as minority, active investments unless evidence indicates that the investor cannot exert significant influence
Indicate whether the statement is true or false