Question

Which of the following is not characteristic of the typical limited liability company? Death of a member (owner) causes it to dissolve unless the remaining members decide to continue the business. All members (owners) are allowed by law to participate in the management of the firm. The company has, legally, a perpetual existence. All members (owners) have limited liability.

Answer 1

Answer:

Death of a member does not cause the LLC to dissolve unless the rest of the members want to continue. It is not a characteristic of a limited liability company.

Explanation:

An LLC or limited liability company is a kind of hybrid corporate structure which combines the characteristics of a corporation and sole proprietorship or partnership. The company has a separate legal existence apart from its members. The members have a limited liability. There is flexibility in taxation. All the members are allowed to participate in management, there is no board of directors for management.