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

Question

Quizplus · Accepted Answer

A disadvantage of a limited liability company is that it must dissolve when an owner leaves the company. This means that the company's existence is tied to the individuals who own it, which can create instability and uncertainty for the business.

A Disadvantage of a Limited Liability Company Is That It