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

Julia owns and operates Collectable Dolls without creating a separate business organization.She receives all the profits from the doll sales.Collectable Dolls is most likely a

The members of a limited liability company enjoy limited liability.

Connie,Drew,and Ellen are the general partners of Foreign Auto Repair,a lim-ited partner-ship.Connie dies.The partnership can

Edgar,Jon and Phoebe do business as Reliable Movers.Phoebe develops a debilitating illness and can no longer work.Phoebe

A limited liability company (LLC) formed in one state but doing business in another state is referred to in the second state as a foreign LLC.

A limited liability company is operated in compliance with state law.

A member of a limited liability company (LLC) has the power and the right to dissociate from the LLC at any time.

A limited liability company can be taxed as a corporation.

Dani is considering forms of business organization for her financial advisory firm.Like most states,Dani's state requires that to form a limited liabil-ity company,she must file with a central state agency

In a sole proprietorship,the owner receives 90 percent of the profits and the government receives 10 percent.

A limited liability company must be managed by its members.

A sharing of both profits and losses is the only requirement of a partnership.