Which of the following is a characteristics of a limited liability company?
- death of a shareholder dissolves the company
- Owned by the directors
-
separated from the owners
- profits are shared equally
The correct answer is: C
Explanation
A limited liability company (LLC) is a business structure that offers the owners (referred to as members) limite liability protection. This means that the personal assets of the owners are separate from the liabilities and debts of the company. The owners' liability is limited to their investment in the company, and their personal assets an generally protected from company obligations.
This separation of the company's liabilities from the owners' personal assets is a key characteristic of an LLC. It provides a layer of protection for the owners in case the company faces financial difficulties or legal issues.