Answered: Which of the following three statements…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

7. Which of the following three statements are true about Limited Liability Companies (LLCs)?

Group of answer choices

A. Unlike S corps, LLCs are more flexible and can have members that are corporations or partnerships

B. Corporations have an advantage over LLCs because the law of corporations is more established and predictable

C. LLC members can freely transfer their right to receive a check, but not their right to participate in decsion-making

D. All of the above

E. None of the above

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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