Question

A limited liability company is essentially​ ________.

a. just another name for a limited partnership

b. just another name for a corporation

c. a limited partnership without a general partner

d. a limited partnership without limited partners

Answer 1

Answer: Option C

Explanation: A limited liability is a structure which combines the characteristics of both a company and a partnership. In such a structure the owners are not held personally liable in case if any default or liquidation.

The distribution of profits and the decision making process in such a structure depicts the partnership and the limited liability feature indicates corporation structure.

Hence the correct option is C.