1. Which one of the following characteristics applies to a limited liability com

Question

1. Which one of the following characteristics applies to a limited liability company?

A. available only to firms having a single owner

B. limited liability for limited partners only

C. taxed similar to a partnership

D.taxed similar to a C corporation

E. all income generated is totally tax-free

______________________________________________________________________

2.Which of the following should a financial manager consider when analyzing a capital budgeting project?
I. project start up costs
II. timing of all projected cash flows
III. dependability of future cash flows
IV. dollar amount of each projected cash flow

A. I and IV only

B. I, II, and IV only

C. I, II, and III only

D. II, III, and IV only

E. I, II, III, and IV

______________________________________________________________________

Explanation / Answer

1.C. taxed similar to a partnership

2. E. I, II, III, and IV

3. A.corporation.

4. A.working capital

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