Exam 32: Limited Liability Companies and Special Business Forms

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

If a limited liability company is not meeting the economic purpose for which it was established, a court may order the dissolution of the firm.

A group of consumers form Grocers Mart Cooperative. This form of business organization makes it possible for these consumers to

Trans-Pacific Company and USA Export, Inc., form a business organization to engage in importing and exporting. Its assets are held in the names of the members and its shareholders have personal liability. This organization is

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

Croissants Corporation and Donuts Company transfer their assets to Edibles Inc., which manages the assets and distributes the profits to Croissants and Donuts. This arrangement is

Greenway Corporation and Happy Trails, Inc., combine their efforts to build a network of biking and hiking trails along an unused railroad spur. Their form of business organization is

A business organizational form that limits its owners' liability allows the firm to lawfully

If a member of a limited liability company dissociates from the firm, the other members can continue the firm's business, and the dissociated member can continue to act as an agent for the firm.

A limited liability company is an aggregate of its members, not a separate legal entity.

With respect to taxes imposed on limited liability companies, most states

Because the activities of a partnership are more limited than the business of a joint venture, the members of a joint venture are presumed to have more power to bind their co-venturers.

Accounting LLC is a member-managed limited liability company. Unless the members have agreed otherwise, all decisions with respect to the firm's business are made by

In most circumstances, the manager of a limited liability company is liable in that capacity for the liability of the firm.

Ensure Care LLC's owners are Fez and Guan. As a limited liability company, Ensure Care enters into contracts

To gain an advantage in a business deal, Masonry LLC engages in fraud. Nicole, a member of Masonry, significantly contributes to the firm's misconduct. For any resulting damages, a court is most likely to hold Nicole

In a joint stock company, the shareholders are considered to be agents of one another, as the partners are in a partnership.

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

In most situations, with respect to a limited liability company's debts, the firm's members are shielded from

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.