Exam 4: Limited Liability Companies and Special Business Forms

Under most limited liability company statutes, if the members do not specify how profits will be split, they are divided in proportion to the members' capital investment.

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

Members of a limited liability company (LLC) can stipulate in their operating agreement how managers will be chosen or removed.

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

Tax Accounting, LLC, is a member-managed limited liability company. If the law in Tax Accounting's state is like the law in most states, unless the members have agreed otherwise, voting rights are apportioned according to

Typically, the articles of organization of a limited liability company (LLC) include information on how the LLC will be managed.

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

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

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

Business Media, a partnership, publishes periodicals, including Cycle Review. DangerZoners, also a partnership, publishes 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?

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.

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

Dreem Land Corporation and Earthbound Investments Company transfer their property to Financial Managers, Inc., which manages the property and distributes the profits to Dreem and Earthbound. This form of a business organization is

If a dispute arises and the applicable limited liability company statute does not cover the issue, a court will most likely dismiss the case.

Farm & Ranch is an unincorporated cooperative. Unincorporated cooperatives are often treated like

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

The alter-ego theory cannot be applied to a limited liability company.

The members of a joint venture have less implied and apparent authority than the partners in a partnership.

In most states, a limited liability company can have only a limited number of members.

A limited liability company is a citizen of every state of which its members are citizens.