General Studies · Forms of Business Organisations
Which of the following statements is incorrect regarding a Limited Liability Company (LLC)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1An LLC is a hybrid model with elements of both a traditional partnership and a corporation.
- 2The members/owners in such a business enjoy limited liability, similar to that of a shareholder in a corporation.
- 3Members and owners of an LLC are not protected from being held personally liable for the operations and debts of the business.✓
- 4A limited liability company consists of one or more members/owners who actively manage the business of the limited liability company.
Correct answer
Members and owners of an LLC are not protected from being held personally liable for the operations and debts of the business.
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