GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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combines the best features of a partnership and corporation
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is a business coming together for a limited time
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is a company where owners have unlimited liability
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None of the above
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Detailed explanation-1: -Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship. While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of partnerships.
Detailed explanation-2: -Many view an LLC as a blend of a partnership, which is a straightforward business agreement between two or more owners, and a corporation, which has certain liability protections.
Detailed explanation-3: -Characteristics of limited liability company include separate legal existence, limited liability, flexibility in taxation, and simplicity in operation.
Detailed explanation-4: -LLP stands for Limited Liability Partnership. Limited liability partnership definition – It is an alternative corporate business form that offers the benefits of limited liability to the partners at low compliance costs. It also allows the partners to organize their internal structure like a traditional partnership.