FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Limited Liability Business Forms

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

The extent to which a limited partner can engage in management before being exposed to liability for partnership obligations is clear.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

The management of a limited liability company must include at least one of the members.

A) True
B) False

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm

Paolo, Quito, Reyes, and Sari form Toda el Mundo LP, a limited partnership to import and sell clothing made in remote global locales. In the absence of an agreement among the partners to the contrary, profits will be shared

In some states, to form a limited liability company, a business must have

Most states apply to a limited liability company formed in another state the law of the state in which the firm currently does most of its business.

As in a partnership, a limited liability company may pay no taxes-profits can be passed through to the members, who pay personal taxes on the profits.

All of the statutory and common law rules governing partnerships apply to a limited liability partnership (LLP), except those modified by the applicable LLP statute.

The members of a limited liability company have considerable flexibility in managing the business of the firm.

Unlike a sole proprietorship or a partnership, a limited liability company cannot be held liable for a loss caused by the wrongful acts of its members.

If the members of a limited liability company do not stipulate in their operating agreement how voting rights will be apportioned, in most states, only the member-managers will be entitled to vote.

A limited liability company is a citizen only of the state in which it was formed.

A private and informal agreement usually suffices to form a limited partnership.

When the promoter of a limited liability company enters into a preformation contract on the firm's behalf, the company must adopt the contract to enforce it.

Choosing a business organizational form that limits its owners' liability is associated with the potential for higher profits.

Grape Vineyards LLC, the members of which include Howie and Ilya, can hold title to property because as a limited liability company the firm is

Edna, Fiona, and Gwyn form a limited partnership to make and test-market Happy Donuts and other bake-at-home pastries. To avoid a dispute in the event of the firm's dissolution about how its assets should be valued and distributed, and whether the business should be sold, the partners should seek

Organizing as a limited liability company prevents the firm from attracting foreign investors.

The operating agreement of a limited liability company cannot provide for the calculation of a buyout price on a member's dissociation because the event has not yet occurred.

In a limited partnership, a general partner assumes no liability for partnership debts beyond the amount of capital contributed.