Question

Which of the following is not a characteristic of a limited liability company? a. limited legal liability b. taxable c. unlimited life d. moderate ability to raise capital

Answer 1

Solution. The correct answer is option d)moderate ability to raise capital.

Explanation: Option a)limited legal liability holds true for a limited liability company as the name suggests. Option b)taxable, a limited liability company is flexible in taxation policy and are taxed under IRS set rules and regulations. Option c)unlimited life holds true for a limited liability company as it enjoys an unlimited life for its members. Option d)moderate ability to raise capital holds false as a characteristic for a limited liability company as members enjoy limited liability and can raise capital through investors or partnering contributions.