A form of business entity that provides its owners the limited liability of a corporation and the tax advantages of a partnership.

• A. Unincorporated association
• B. Tender offer
• C. Takeover
• D. Limited liability company

Answer: (D)

The form described is a limited liability company. It combines the liability protection of a corporation with the tax treatment of a partnership. Members have limited personal liability for business debts, while the entity’s profits and losses typically pass through to their personal tax returns, avoiding double taxation at the corporate level. LLCs also offer flexible management structures and profit allocation through an operating agreement. By contrast, an unincorporated association generally lacks liability protection, and tender offers or takeovers are corporate actions, not entity types.