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State the advantages of limited-liability company (LLC).
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- Explain limited-liability company (LLC).describe the advantages of an LLC versus operating as a sole proprietorship, general partnership, limited partnership, C Corporation, and S Corporation.Explain the difference between a sole proprietorship, LLC/PLLC, and corporation. Include advantages, disadvantages, and examples. 7
- Distinguish between a member-managed limited liability company and a manager-managed limited liability company.Which is true about a limited partnership (LP)? a. General partners are exposed to liability for all of the businesses’ debts, and limited partners are only exposed to the extent of their investment b. Limited partners are exposed to liability for all of the businesses’ debts, and general partners are only liable to the extent of their investment c. All partners, both general and limited, are exposed to liability for all of the businesses’ debts d. All partners are exposed to liability only to the extent of their investmentPartnerships and most LLCs are known as pass-through entities. What does this mean for their partners (in the case of partnerships) and members (in the case of LLCs)? a. The businesses themselves are not subject to income tax; the individual partners/members pay income tax on their share of the businesses’ profits b. Partners and members are subject to double taxation
- Explain what rights shareholders have in a Joint Stock company? Describe each right in detail.Differentiate sole proprietorship, partnership and corporationWhat is the nature of liability of limited partners as to limited partnership debts or obligations? A. They are liable up to the extent of their capital contribution only B. They are liable pro-rata up to the extent of their separate assets after the partnership assets are exhausted C. They are liable pro-rata up to the extent of their capital contribution only D. They are liable equally up to the extent of their separate assets after the partnership assets are exhausted