Exam 36: Limited Liability Companies and Special Business Forms

Commerce & Trade Corporation and Distance Shipping & Transport, Inc., form a business trust. eCharge Auto Company and Fleet Electric Corporation form a joint stock company. Green AgriCorp and Harvest Farms, Inc., form an incorporated cooperative. What features do these combinations of business organization have in common?

Global Capital S.A. is a foreign investor. With respect to the operations of a limited liability company in the United States, Global can

When the member of a limited liability company engages in fraud on the firm's behalf, the member is not likely to be held personally liable.

The beneficiaries of a business trust are personally liable for the trust's debts and obligations.

Phone Apps LLC is forming as a limited liability company. To become a manager-managed firm, Phone Apps' members must

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

The operating agreement of a limited liability company and a state's LLC statute can be applied together to determine the outcome of a dispute between the firm's members.

A syndicate may be organized as a corporation or a partnership, or in some situations as no recognizable form of business organization.

Like a sole proprietorship or a partnership, the members of a limited liability company have unlimited liability for the firm's debts.

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

In a state in which the managers of a limited liability company owe fiduciary duties to the firm and its members, those members can sue the managers for breaching a fiduciary duty.

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

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

If a member of a limited liability company dissociates from the firm in violation of the operating agreement, the member can be held liable for any loss to the business resulting from the withdrawal.

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

When a member of a limited liability company guarantees payment of a loan to the firm, the member is personally liable for the obligation.

Start-Up LLC is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be

Licensed fishing outfits in Bayou City form a business organization to provide, without profit, an economic service to its members. This is

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