Exam 30: Limited Liability Company and Limited Liability Partnership

Which of the following is not an appropriate abbreviation for a limited liability company?

A manager of a limited liability company who negligently causes injury to another person while on the job is liable to the injured person.

The ________ of a limited liability company involves preserving and selling the assets of the LLC and distributing the money and property to creditors and members.

Sarah,who manages a limited liability company,borrows $500,000 from a bank.She is careful to sign the note to the bank in the name of the limited liability company only.When the company goes bankrupt,however,the bank seeks repayment from her.Is she liable?

Why should a person employed by a limited liability company who negligently causes an automobile accident while working in the scope of ordinary business be held liable in his or her personal capacity?

The right to dispose of all or substantially all of the limited liability company's property may not be delegated to a manager.

In a limited liability partnership,there is no tax paid at the partnership level,and all profits and losses are reported on the individual partner's income tax return.

The United States Congress issued the Uniform Limited Liability Company Act.

Sally wants to start a limited liability company named "Grocery Shopper" to help people who are too busy to go to the grocery store.Is there any problem with this name? If so,what?

A limited liability company is an "at-will" limited liability company unless it is designated as a "term" limited liability company,and the duration of the term is specified in the articles of organization.

A limited liability company with no specified term is a(n)________ LLC.

The Uniform Limited Liability Company Act mandates that a limited liability company member has the right to an equal share in profits,and that such right may not be modified.

Why,in the absence of an agreement to the contrary,should profits and losses of a limited liability company be distributed equally among members,regardless of their capital contribution? Would it not seem more equitable if profits and losses were distributed based on members' capital contributions?

Most LLCs,particularly small ones,choose as the state of organization the state in which the LLC will be doing most of its business.

A limited liability company has the same powers as an individual to do all things necessary or convenient to carry on its business or affairs.

Many entrepreneurs who begin new businesses choose the limited liability company as their legal form for conducting business.

As a form of conducting business in the United States,limited liability companies began:

Operating agreements are required to be in writing.

The United States Congress initially authorized the development of limited liability companies.

Which of the following is true regarding the taxation of limited liability companies?