Exam 32: Limited Liability Companies and Special Business Forms

In most states,a limited liability company must have at least two members.

Oil Reserves,Inc.,and Petro Refining Corporation form a joint venture to design and test petroleum storage facilities and equipment. When a dispute arises,Oil files a suit against Petro. The court is most likely to apply the same principles to this joint venture as it applies to

The members of a limited liability company have unlimited liability for any loss or injury caused by the wrongful acts or omissions of the firm.

Like the shareholders of a corporation,the owners of a limited liability company enjoy limited liability.

GMO Grain Corporation and Hybrid Yields,Inc.,form a joint stock company. The ownership of a joint stock company is represented by

Gabriella is a beneficiary of a business trust. As a beneficiary,she is required to

Business Media,a partnership,publishes periodicals,including Cycle Review. DangerZoners,also a partnership,pub-lishes Extreem Sportz. Business Media and DangerZoners agree to pool their resources in a one-time deal to print and market a book,Future Runs. In contracting with Geo Cache,Inc.,for supplies to print the book,Business Media commits fraud. In contracting with Host Articles Agency for materials to use in Extreem Sportz,DangerZoners commits fraud. Geo Cache and Host Articles file suits against Business Media and DangerZoners. What type of business organization has Business Media and DangerZoners formed? To whom,if anyone,is Business Media liable? To whom,if anyone,is DangerZoners liable?

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

Unless a limited liability company indicates otherwise,the Internal Revenue Service automatically taxes it as a partnership.

Rafaela Art Gallery and Sequoia Exhibitions form a joint venture. When a dispute arises,Rafaela files a suit against Sequoia. The court is most likely to apply the same principles to this joint venture as it applies to

Romero is a member of Smooth Operators LLC,a limousine service. Romero's relationship to Smooth Operators ends,but the firm continues to do business. This is

Limited liability companies (LLCs)are governed by federal LLC statutes.

Global Shipping Corporation and Harbor Warehouse Company transfer their property to Investment Managers,Inc.,which manages the property and distributes the profits to Global Shipping and Harbor Warehouse. This form of a business organization is

Bethany and Claiborne want to form a limited liability company to manage their business,DoReMi Music. Their state has adopted the Uniform Limited Liability Company Act,which has been adopted in

Unless otherwise agreed,joint venturers share profits and losses equally.

The alter-ego theory can be applied to a corporation but not to a limited liability company.

A cooperative cannot be incorporated.

Normally,a member who dissociates from a limited liability company (LLC)has the right to force the LLC to dissolve.

Arnie is a member of Bowling & Billiards,LLC. Arnie can participate in the firm's management

Most states apply to a limited liability company (LLC)formed in another state the law of the state where the LLC was formed.