What term is used for the owners of a Limited Liability Company?

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Study for the Farm Business Management Exam. Access multiple choice questions with hints and explanations. Prepare effectively for success on your exam!

Multiple Choice

What term is used for the owners of a Limited Liability Company?

Explanation:
Owners of an LLC are called members. This name reflects that ownership comes as membership interests rather than shares of stock. In contrast, shareholders own a corporation, partners belong to a partnership, and beneficiaries are those who receive assets from trusts or estates. An LLC can be member‑managed (members run the company) or manager‑managed (managers run it), but the people who own the LLC are always called members.

Owners of an LLC are called members. This name reflects that ownership comes as membership interests rather than shares of stock. In contrast, shareholders own a corporation, partners belong to a partnership, and beneficiaries are those who receive assets from trusts or estates. An LLC can be member‑managed (members run the company) or manager‑managed (managers run it), but the people who own the LLC are always called members.

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