Question 1

A partner may not have the right to dissociate from the partnership.​

Accepted Answer

A) True 
 B)False

Question 2

​In a limited liability company, the management may consist of members or nonmembers, but not both.

Accepted Answer

A) True 
 B)False

Question 3

A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.​

Accepted Answer

A) True 
 B)False

Question 4

Without creating a separate business organization, Lou starts up Main Street Motors, a new, pre-owned auto sales enterprise. Lou is​

Accepted Answer

A)  ​none of the choices. 
B)  ​a member. 
C)  ​a partner. 
D)  ​a sole proprietor. 
A)  ​none of the choices. 
B)  ​a member. 
C)  ​a partner. 
D)  ​a sole proprietor.

Question 5

A partner's profit from a partnership is taxed as income to the firm.​

Accepted Answer

A) True 
 B)False

Question 6

Dissociation normally entitles the partner to buy his or her interest from the partnership.​

Accepted Answer

A) True 
 B)False

Question 7

A sharing of profits from a business creates a presumption that a partnership exists.​

Accepted Answer

A) True 
 B)False

Question 8

Michel is a citizen of France. With respect to a limited liability company in the United States, Michel can​

Accepted Answer

A)  ​act as a creditor, but cannot otherwise invest or participate. 
B)  ​become a member. 
C)  ​not become a member, but can participate in its operations. 
D)  ​not become a member or otherwise participate in its operations. 
A)  ​act as a creditor, but cannot otherwise invest or participate. 
B)  ​become a member. 
C)  ​not become a member, but can participate in its operations. 
D)  ​not become a member or otherwise participate in its operations.

Question 9

Ken owns and operates Living Earth Garden Shop as a sole proprietorship. When Ken dies, Living Earth will automatically​

Accepted Answer

A)  ​dissolve. 
B)  ​pass to Ken's heirs. 
C)  ​pass to the state. 
D)  ​be offered for sale to its creditors and competitors. 
A)  ​dissolve. 
B)  ​pass to Ken's heirs. 
C)  ​pass to the state. 
D)  ​be offered for sale to its creditors and competitors.

Question 10

In many states, an operating agreement is required for a limited liability company to exist.​

Accepted Answer

A) True 
 B)False

Question 11

A sole proprietor owns the entire business.​

Accepted Answer

A) True 
 B)False

Question 12

Bill sells Corner Deli, a sole proprietorship, to Debra. This is​

Accepted Answer

A)  ​the creation of a partnership. 
B)  ​not a transfer of ownership without the other owners' approval. 
C)  ​not a transfer of ownership-a sole proprietorship cannot be transferred. 
D)  ​a transfer of the ownership of the business. 
A)  ​the creation of a partnership. 
B)  ​not a transfer of ownership without the other owners' approval. 
C)  ​not a transfer of ownership-a sole proprietorship cannot be transferred. 
D)  ​a transfer of the ownership of the business.

Question 13

Diane organized, and owns and operates, Reliable Roofing, a construction outfit, in the simplest form of business organization. This is​

Accepted Answer

A)  ​a limited liability company. 
B)  ​a partnership. 
C)  ​a sole proprietorship. 
D)  ​none of the choices. 
A)  ​a limited liability company. 
B)  ​a partnership. 
C)  ​a sole proprietorship. 
D)  ​none of the choices.

Question 14

Data Analytics, LLC, is a limited liability company. Unless the articles of organization specify otherwise, it will most likely be assumed that the firm is​

Accepted Answer

A)  ​member-managed. 
B)  ​manager-managed. 
C)  ​an aggregate of member and non-member managers. 
D)  ​run by an outside professional management group. 
A)  ​member-managed. 
B)  ​manager-managed. 
C)  ​an aggregate of member and non-member managers. 
D)  ​run by an outside professional management group.

Question 15

The law considers all new businesses to be sole proprietorships regardless of the number of owners.​

Accepted Answer

A) True 
 B)False

Question 16

Limited legal liability generally is necessary for small businesses that wish to raise outside capital.​

Accepted Answer

A) True 
 B)False

Question 17

Stefani and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property. Their partnership agreement is legally binding​

Accepted Answer

A)  ​only if a copy of the agreement is filed in the appropriate state office. 
B)  ​only if the agreement is printed in hard copy and signed by the parties. 
C)  ​only if the parties exchange valid consideration. 
D)  ​without more. 
A)  ​only if a copy of the agreement is filed in the appropriate state office. 
B)  ​only if the agreement is printed in hard copy and signed by the parties. 
C)  ​only if the parties exchange valid consideration. 
D)  ​without more.

Question 18

For federal income tax purposes, one-member limited liability companies are not taxed.​

Accepted Answer

A) True 
 B)False

Question 19

Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.​

Accepted Answer

A) True 
 B)False

Question 20

Custom Auto, LLC, is a limited liability company. Its members include Dennis and Emma. Like other LLCs with more than one member, unless indicated otherwise, the firm will automatically be taxed as​

Accepted Answer

A)  ​a person. 
B)  ​a corporation. 
C)  ​a sole proprietorship. 
D)  ​a partnership. 
A)  ​a person. 
B)  ​a corporation. 
C)  ​a sole proprietorship. 
D)  ​a partnership.

A partner may not have the right to dissociate from the partnership.

In a limited liability company, the management may consist of members or nonmembers, but not both.

A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.

Without creating a separate business organization, Lou starts up Main Street Motors, a new, pre-owned auto sales enterprise. Lou is

A partner's profit from a partnership is taxed as income to the firm.

Dissociation normally entitles the partner to buy his or her interest from the partnership.

A sharing of profits from a business creates a presumption that a partnership exists.

Michel is a citizen of France. With respect to a limited liability company in the United States, Michel can

Ken owns and operates Living Earth Garden Shop as a sole proprietorship. When Ken dies, Living Earth will automatically

In many states, an operating agreement is required for a limited liability company to exist.

A sole proprietor owns the entire business.

Bill sells Corner Deli, a sole proprietorship, to Debra. This is

Diane organized, and owns and operates, Reliable Roofing, a construction outfit, in the simplest form of business organization. This is

Data Analytics, LLC, is a limited liability company. Unless the articles of organization specify otherwise, it will most likely be assumed that the firm is

The law considers all new businesses to be sole proprietorships regardless of the number of owners.

Limited legal liability generally is necessary for small businesses that wish to raise outside capital.

Stefani and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property. Their partnership agreement is legally binding

For federal income tax purposes, one-member limited liability companies are not taxed.

Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.

Custom Auto, LLC, is a limited liability company. Its members include Dennis and Emma. Like other LLCs with more than one member, unless indicated otherwise, the firm will automatically be taxed as

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Corporations

Filters

Exam 18: Small Businesses and Limited Liability Companies

A partner may not have the right to dissociate from the partnership.​

​In a limited liability company, the management may consist of members or nonmembers, but not both.

A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.​

Without creating a separate business organization, Lou starts up Main Street Motors, a new, pre-owned auto sales enterprise. Lou is​

A partner's profit from a partnership is taxed as income to the firm.​

Dissociation normally entitles the partner to buy his or her interest from the partnership.​

A sharing of profits from a business creates a presumption that a partnership exists.​

Michel is a citizen of France. With respect to a limited liability company in the United States, Michel can​

Ken owns and operates Living Earth Garden Shop as a sole proprietorship. When Ken dies, Living Earth will automatically​

In many states, an operating agreement is required for a limited liability company to exist.​

A sole proprietor owns the entire business.​

Bill sells Corner Deli, a sole proprietorship, to Debra. This is​

Diane organized, and owns and operates, Reliable Roofing, a construction outfit, in the simplest form of business organization. This is​

Data Analytics, LLC, is a limited liability company. Unless the articles of organization specify otherwise, it will most likely be assumed that the firm is​

The law considers all new businesses to be sole proprietorships regardless of the number of owners.​

Limited legal liability generally is necessary for small businesses that wish to raise outside capital.​

Stefani and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property. Their partnership agreement is legally binding​

For federal income tax purposes, one-member limited liability companies are not taxed.​

Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.​

Custom Auto, LLC, is a limited liability company. Its members include Dennis and Emma. Like other LLCs with more than one member, unless indicated otherwise, the firm will automatically be taxed as​

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Corporations

Filters

A partner may not have the right to dissociate from the partnership.

In a limited liability company, the management may consist of members or nonmembers, but not both.

A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.

Without creating a separate business organization, Lou starts up Main Street Motors, a new, pre-owned auto sales enterprise. Lou is

A partner's profit from a partnership is taxed as income to the firm.

Dissociation normally entitles the partner to buy his or her interest from the partnership.

A sharing of profits from a business creates a presumption that a partnership exists.

Michel is a citizen of France. With respect to a limited liability company in the United States, Michel can

Ken owns and operates Living Earth Garden Shop as a sole proprietorship. When Ken dies, Living Earth will automatically

In many states, an operating agreement is required for a limited liability company to exist.

A sole proprietor owns the entire business.

Bill sells Corner Deli, a sole proprietorship, to Debra. This is

Diane organized, and owns and operates, Reliable Roofing, a construction outfit, in the simplest form of business organization. This is

Data Analytics, LLC, is a limited liability company. Unless the articles of organization specify otherwise, it will most likely be assumed that the firm is

The law considers all new businesses to be sole proprietorships regardless of the number of owners.

Limited legal liability generally is necessary for small businesses that wish to raise outside capital.

Stefani and Tyler agree in an exchange of e-mail to form a partnership to buy and sell real property. Their partnership agreement is legally binding

For federal income tax purposes, one-member limited liability companies are not taxed.

Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.

Custom Auto, LLC, is a limited liability company. Its members include Dennis and Emma. Like other LLCs with more than one member, unless indicated otherwise, the firm will automatically be taxed as