a. An entity owned by a State, political subdivision, or foreign government is classified as a corporation under 301.7701-2(b)(6).

True/False

b.

Section 301.7701-3(b)(2)(i)(C) provides that the default classification of a foreign entity with a single owner that does not have limited liability is a disregarded entity (DRE).

True/ False

c.

Limited liability means an owner/member does not have any personal liability for the debts of the entity by reason of being an owner/member, based on the laws of the jurisdiction under which the entity is organized. See 301.7701-3(b)(2)(ii).

True/False

These questions are part of taxation of business entities