Exam 23: Sole Proprietorships, partnerships, and Limited Liability Companies

Venture Capital,LP,is a limited partnership.Its limited partners include more than 150 sophisticated investors and investment professionals.A Venture limited partner loses his or her limited liability if he or she

Fay is a member of Garden Groves LLC.Like other members of limited liability companies,Fay's liability for Garden Groves's obligations resembles the liability of

Jeri and Knute are members of Lighthouse Tours LLC,a limited liability company.With respect to Lighthouse Tours's liability,as members,Jeri and Knute are shielded from

Robert owns Textbooks Plus,a sole proprietorship that sells textbooks.When Robert dies,Textbooks Plus will

A partner is entitled to make secret profits or put self-interest before his or her duty to the interest of the partnership.

In a general partnership,the acts of one partner in the ordinary course of business subjects both the partner and the firm to liability.

Mead,Nero,and Olen do business as Pipe & Plumbing Services.After Mead's relationship to the firm ends,Nero and Olen agree to discontinue the business.This is

Foreign investors are not allowed to become limited liability company members.

State limited liability company statutes are uniform.

A partnership ends if one partner dissociates from the firm.

Parker and Oscar sign a partnership agreement to do business as "Parker's Plumbing" without specifying a duration.This partnership is terminable

In a limited liability partnership,a partner can be exempt from personal liability for the malpractice of other partners.

Location! Realty LLC is a limited liability company.Like other LLCs,for federal jurisdictional purposes,Location! Realty is most likely a citizen of

Newt is considering forms of business organization for Newton Design,an ar-chitectural firm.An advantage of a limited liability partnership is that partners can avoid personal liability for

In choosing a form of business organization for a new enterprise,important factors include the liability of the owner.

In a limited partnership,a limited partner has full responsibility for the partnership and for all its debts.

Each partner in a partnership has the right to full and complete information concerning the conduct of all aspects of partnership business.

Tom and Bill are partners in Tough Trucks Towing.James is not a partner.In dealing with Fred,James holds himself out to be a partner in Tough Trucks Towing and Fred contracts to have Tough Trucks Towing tow some vehicles for him.If Tough Trucks fails to tow the vehicles,a court may conclude that

Simone is a manager of Rolling Hills Resort LLC,a limited liability company.Rolling Hills is formed in a state that does not explicitly create fiduciary duties for LLC managers but does require the exercise of good business judgment.Unless a court rules otherwise,Simone owes fiduciary duties to

In a limited partnership,a general partner's dissociation from the firm may lead to dissolution.