Question

In a limited minus liability ​company, the​ ________. A. members are personally liable to pay the​ company's debts B. members are liable for each​ other's actions C. members pay income tax on their share of earnings D. business terminates at the death of a member

Answer 1

The answer is "Option C"

Explanation:

Limited liability is a kind of legal framework for an organization in which a commercial loss can not be increased by the amount of money invested in a joint venture or a limited firm. To put it another way, companies and employees ' corporate assets are not at risk if the company fails, and other choices were wrong that can be described as follows:

• In option A, It is wrong, because members must not directly be responsible for paying the company's debts.
• In option B, The members shall not be held accountable for each other's acts.
• In option D, It can't terminate, because the member dies.