Exam 30: Limited Liability Companies and Limited Liability Partnerships

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The failure of an LLC to observe the usual company formalities acts as grounds for imposing personal liability on the members of the LLC.

(True/False)

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Question 81

Naomi and Melanie form an LLC.They contribute equal amounts as capital.However,when the LLC makes $100,000 in profits,Naomi receives $25,000 and Melanie receives $75,000.When the company incurs a loss of $20,000 the next year,they share the losses equally.Under what circumstances can such inequitable distribution of the profits and losses be made?

(Essay)

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Question 82

The partners of an LLP stand to lose only their capital contribution if the partnership fails.

(True/False)

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Question 83

The ________ is a model act that provides comprehensive and uniform laws for the formation,operation,and dissolution of LLCs.

(Multiple Choice)

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Question 84

The owner of an LLC is called a ________.

(Multiple Choice)

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Question 85

Ali is a member of a member-managed LLC.While Ali is driving to a client's office to handle the LLC's business,he hits an old man and severely injures him.The man sues the LLC and recovers $3 million in damages.The court also determines that Ali was driving above the speed limit while the accident occurred and so was grossly negligent.Which of the following is true of the given scenario?

(Multiple Choice)

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Question 86

An LLP must register as a(n)________ in any state in which it wants to conduct its business.

(Multiple Choice)

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Question 87

Distinguish between a member-managed LLC and a manager-managed LLC.

(Essay)

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Question 88

Chan,Yuvi,Betty,and Bob form a manager-managed LLC that sells antique commodities online.Yuvi and Betty are named managers of the LLC.Betty secretly starts a competing business to conduct online auctions over the Internet.Which of the following is true of the given scenario?

(Multiple Choice)

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Question 89

A unanimous vote of the members of an LLC is required for appointing or removing a manager.

(True/False)

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Question 90

Ali is a member of a member-managed LLC.While Ali is driving to a client's office to handle the LLC's business,he hits an old man and severely injures him.The man sues the LLC and recovers $3 million in damages.The court however determines that Ali was ordinarily negligent and that the accident was caused by the uneven terrain of the road.Which of the following is true of the given scenario?

(Multiple Choice)

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Question 91

Dorothy is a nonmanager member of a 15-person manager-managed LLC that is engaged in selling media spaces to advertising agencies.Dorothy secretly purchases some media spaces that are in high demand from a few clients without telling the others in the LLC,sells it to a few agencies,and gains huge profits for herself in the process.Which of the following is true of the given scenario?

(Multiple Choice)

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Question 92

Which of the following is true of a member-managed LLC?

(Multiple Choice)

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Question 93

A transfer of an interest in an LLC entitles the transferee by default to become a member of the LLC.

(True/False)

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Question 94

Profits and losses from an LLC do not have to be distributed in the same proportion.

(True/False)

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Question 95

A(n)________ is a document filed with the secretary of state that gives constructive notice that a member has withdrawn from an LLC.

(Multiple Choice)

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Question 96

Which of the following is true of LLC taxation?

(Multiple Choice)

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Question 97

Which of the following is true of the profits and losses of an LLC whose operating agreement does not contain profit or loss sharing clauses?

(Multiple Choice)

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Question 98

Which of the following is true of LLPs?

(Multiple Choice)

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Question 99

The debts,obligations,and liabilities of an LLC,whether arising from contracts,torts,or otherwise,are solely those of the LLC.

(True/False)

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Question 100

Showing 81 - 100 of 100

Exam 30: Limited Liability Companies and Limited Liability Partnerships

The failure of an LLC to observe the usual company formalities acts as grounds for imposing personal liability on the members of the LLC.

The partners of an LLP stand to lose only their capital contribution if the partnership fails.

The ________ is a model act that provides comprehensive and uniform laws for the formation,operation,and dissolution of LLCs.

The owner of an LLC is called a ________.

An LLP must register as a(n)________ in any state in which it wants to conduct its business.

Distinguish between a member-managed LLC and a manager-managed LLC.

Chan,Yuvi,Betty,and Bob form a manager-managed LLC that sells antique commodities online.Yuvi and Betty are named managers of the LLC.Betty secretly starts a competing business to conduct online auctions over the Internet.Which of the following is true of the given scenario?

A unanimous vote of the members of an LLC is required for appointing or removing a manager.

Which of the following is true of a member-managed LLC?

A transfer of an interest in an LLC entitles the transferee by default to become a member of the LLC.

Profits and losses from an LLC do not have to be distributed in the same proportion.

A(n)________ is a document filed with the secretary of state that gives constructive notice that a member has withdrawn from an LLC.

Which of the following is true of LLC taxation?

Which of the following is true of the profits and losses of an LLC whose operating agreement does not contain profit or loss sharing clauses?

Which of the following is true of LLPs?

The debts,obligations,and liabilities of an LLC,whether arising from contracts,torts,or otherwise,are solely those of the LLC.

Legal Heritage and the Digital Age

Constitutional Law for Business and E-commerce

Courts and Jurisdiction

Judicial Alternative Administrative and E-Dispute Resolution

Intentional Torts and Negligence

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Breach of Contract and Remedies

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System and Electronic Financial Transactions

Credit, Real Property Financing, and Secured Transactions

Bankruptcy and Reorganization

Agency law

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Franchise and Special Forms of Business

Investor Protection, E-Securities, and Wall Street Reform

Antitrust Law and Unfair Trade Practices

Consumer Safety and Environmental Protection

Labor, Worker Protection, and Immigration Laws

Equal Opportunity in Employment

Personal Property, Bailment, and Insurance

Real Property, Landlord-Tenant Law, and Land Use Regulation

Family Law, Wills, and Trusts

Accountants' Duties and Liability

International and World Trade Law

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