Which of the following are features of a limited liability company? i. Separate legal entity...

Explanation

This question is asking about the features of a limited liability company. A limited liability company, also known as an LLC, is a type of business entity where the owners have limited liability for the company's debts and actions. Let's go through each option to determine which features are associated with a limited liability company.

Option A states that the features of a limited liability company are i. Separate legal entity, ii. Right to sue but not be sued, and iii. Has its own corporate name.

Option B states that the features of a limited liability company are ii. Right to sue but not be sued, iii. Has its own corporate name, and iv. The inability of members is limited.

Option C states that the features of a limited liability company are i. Separate legal entity, ii. Right to sue but not be sued, and iv. The inability of members is limited.

Option D states that the features of a limited liability company are i. Separate legal entity, iii. Has its own corporate name, and iv. The inability of members is limited. This is the correct option.

From these options, we can see that the correct features of a limited liability company are: i. Separate legal entity, iii. Has its own corporate name, and iv. The inability of members is limited.

So, the correct answer is Option D: i. Separate legal entity, iii. Has its own corporate name, and iv. The inability of members is limited.

A limited liability company is a popular form of business organization because it provides limited liability protection to its owners, allowing them to separate their personal assets from the company's liabilities. This means that the owners' personal assets are generally not at risk if the company incurs debts or faces legal action. The separate legal entity feature means that the company is recognized as a legal entity separate from its owners, which gives it certain rights and responsibilities. Having its own corporate name means that the company can choose a unique name to represent its brand and identity. The inability of members being limited means that the owners or members of the company have limited liability, meaning their personal liability is limited to their investment in the company.

It is important for commerce students to understand the features of different business entities, as it helps them understand the legal and operational aspects of running a business.