Question 1

A limited liability partnership must be formed in compliance with state statutes.

Accepted Answer

A) True 
 B)False

Question 2

On dissolution, the creditors of the partnership and the creditors of the individual partners can make claims on the partnership's assets.

Accepted Answer

A) True 
 B)False

Question 3

The franchise agreement is not likely to set out standards for the franchise to meet.

Accepted Answer

A) True 
 B)False

Question 4

The courts have tended to regard a limited liability company is a citizen of every state of which its members are citizens.

Accepted Answer

A) True 
 B)False

Question 5

In a manager-managed LLC, the company is managed by

Accepted Answer

A) the LLC's CEO. 
B) the LLC's majority owners. 
C) all of the LLC's members. 
D) those designated by the members. 
A) the LLC's CEO. 
B) the LLC's majority owners. 
C) all of the LLC's members. 
D) those designated by the members.

Question 6

Natural Gas, LP, is a limited partnership to which its partners have contributed capital. Natural Gas's creditors include Precision Piping, Inc. On Natural Gas's dissolution, its assets will be distributed to pay

Accepted Answer

A) the partners and Precision Piping proportionately. 
B) the partners before Precision Piping. 
C) Precision Piping before the partners. 
D) none of the choices. 
A) the partners and Precision Piping proportionately. 
B) the partners before Precision Piping. 
C) Precision Piping before the partners. 
D) none of the choices.

Question 7

Most courts apply the same principles to joint ventures as they apply to partnerships.

Accepted Answer

A) True 
 B)False

Question 8

Orlando is a limited partner in Port of Call Exports, a limited partnership. By participating in the firm's management, Orlando is liable for its obligations

Accepted Answer

A) in proportion to the number of partners in the firm. 
B) to no extent. 
C) to the extent of his capital contribution to the firm. 
D) to the full extent. 
A) in proportion to the number of partners in the firm. 
B) to no extent. 
C) to the extent of his capital contribution to the firm. 
D) to the full extent.

Question 9

Rosalee is a general partner in Silver Dragon, a partnership consisting of the owners of a Chinese and American restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt, Rosalee is

Accepted Answer

A) not liable. 
B) only liable to the amount of her capital contribution. 
C) only liable in proportion to the number of partners in the firm. 
D) personally liable to the full extent. 
A) not liable. 
B) only liable to the amount of her capital contribution. 
C) only liable in proportion to the number of partners in the firm. 
D) personally liable to the full extent.

Question 10

For federal income tax purposes, one-member limited liability companies are never taxed as corporations.

Accepted Answer

A) True 
 B)False

Question 11

​A cooperative cannot be incorporated.

Accepted Answer

A) True 
 B)False

Question 12

Generally, LLP statutes limit the personal liability of partners in a limited liability partnership in some way.

Accepted Answer

A) True 
 B)False

A limited liability partnership must be formed in compliance with state statutes.

On dissolution, the creditors of the partnership and the creditors of the individual partners can make claims on the partnership's assets.

The franchise agreement is not likely to set out standards for the franchise to meet.

The courts have tended to regard a limited liability company is a citizen of every state of which its members are citizens.

In a manager-managed LLC, the company is managed by

Natural Gas, LP, is a limited partnership to which its partners have contributed capital. Natural Gas's creditors include Precision Piping, Inc. On Natural Gas's dissolution, its assets will be distributed to pay

Most courts apply the same principles to joint ventures as they apply to partnerships.

Orlando is a limited partner in Port of Call Exports, a limited partnership. By participating in the firm's management, Orlando is liable for its obligations

Rosalee is a general partner in Silver Dragon, a partnership consisting of the owners of a Chinese and American restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt, Rosalee is

For federal income tax purposes, one-member limited liability companies are never taxed as corporations.

A cooperative cannot be incorporated.

Generally, LLP statutes limit the personal liability of partners in a limited liability partnership in some way.

Legal and Constitutional Foundations of Business

Courts and Alternative Dispute Resolution

Tort Law and Product Liability

Intellectual Property

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Agreement and Consideration in Contracts

Capacity, Legality, and Enforceability

Contract Performance, Breach, and Remedies

Sales and Lease Contracts

Performance and Breach in Sales and Lease Contracts

Consumer Law

Negotiable Instruments

Banking in the Digital Age

Creditors Rights and Bankruptcy

Agency Relationships in Business

Employment Law

Corporations

Investor Protection, Insider Trading, and Corporate Governance

Antitrust Law and Promoting Competition

Personal Property, Bailments, and Insurance

Real Property and Environmental Law

International Law in a Global Economy

Filters

Exam 19: The Entrepreneurs Options

A limited liability partnership must be formed in compliance with state statutes.

On dissolution, the creditors of the partnership and the creditors of the individual partners can make claims on the partnership's assets.

The franchise agreement is not likely to set out standards for the franchise to meet.

The courts have tended to regard a limited liability company is a citizen of every state of which its members are citizens.

In a manager-managed LLC, the company is managed by

Natural Gas, LP, is a limited partnership to which its partners have contributed capital. Natural Gas's creditors include Precision Piping, Inc. On Natural Gas's dissolution, its assets will be distributed to pay

Most courts apply the same principles to joint ventures as they apply to partnerships.

Orlando is a limited partner in Port of Call Exports, a limited partnership. By participating in the firm's management, Orlando is liable for its obligations

Rosalee is a general partner in Silver Dragon, a partnership consisting of the owners of a Chinese and American restaurant. Silver Dragon incurs debt for new dining tables and chairs. With respect to this debt, Rosalee is

For federal income tax purposes, one-member limited liability companies are never taxed as corporations.

​A cooperative cannot be incorporated.

Generally, LLP statutes limit the personal liability of partners in a limited liability partnership in some way.

Legal and Constitutional Foundations of Business

Courts and Alternative Dispute Resolution

Tort Law and Product Liability

Intellectual Property

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Agreement and Consideration in Contracts

Capacity, Legality, and Enforceability

Contract Performance, Breach, and Remedies

Sales and Lease Contracts

Performance and Breach in Sales and Lease Contracts

Consumer Law

Negotiable Instruments

Banking in the Digital Age

Creditors Rights and Bankruptcy

Agency Relationships in Business

Employment Law

Corporations

Investor Protection, Insider Trading, and Corporate Governance

Antitrust Law and Promoting Competition

Personal Property, Bailments, and Insurance

Real Property and Environmental Law

International Law in a Global Economy

Filters

A cooperative cannot be incorporated.