Louisiana Contractors License Practice Exam

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Prepare for your Louisiana Contractors License Exam with multiple choice questions. Each question includes hints and detailed explanations to enhance your understanding. Improve your chances of passing the exam on your first attempt.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What does a C Corporation primarily provide to its owners?

Unlimited liability protection
Limited liability to shareholders
Tax benefits not available to sole proprietorships
Exemption from all taxes

The correct answer is: Limited liability to shareholders

A C Corporation primarily provides limited liability to its shareholders, which is a key feature distinguishing it from other business structures. This means that the personal assets of the shareholders are protected from the corporation's debts and liabilities. If the corporation faces lawsuits or financial difficulties, shareholders are only at risk of losing the amount they invested in the corporation, rather than facing personal liability for the corporation's obligations. This characteristic encourages investment, as the risk is contained, thus making C Corporations attractive for individuals looking to limit their personal exposure while still engaging in business activities. The other options, while related to various aspects of corporate structures, do not accurately capture the primary benefit that a C Corporation provides to its owners.