Question 1

Limited liability partnership statues are designed to permit the conversion of existing general partnerships into limited liability partnerships.

Accepted Answer

A) True 
 B)False

Question 2

You are asked to provide two friends who are in business together with advice regarding what they need to do to legally in order to form a limited liability company.Although your friends like the general notion of limited liability in the operation of their business,they are totally unfamiliar with the legal processes for forming a LLC,so you need to provide them with the basic requirements for LLC creation.What specific advice would you give them?

Accepted Answer

A limited liability company comes into e

Question 3

A limited liability company:

Accepted Answer

A)  must have at least one member that is subject to unlimited liability. 
B)  member may actively participate in control of the business without losing limited liability status. 
C)  both a.and b. 
D)  neither a.nor b. 
A)  must have at least one member that is subject to unlimited liability. 
B)  member may actively participate in control of the business without losing limited liability status. 
C)  both a.and b. 
D)  neither a.nor b.

Question 4

A limited partner can never lose money.

Accepted Answer

A) True 
 B)False

Question 5

A limited liability partnership must include which of the following terms in its name?

Accepted Answer

A)  LLP 
B)  limited liability partnership 
C)  either a.or b. 
D)  neither a.nor b. 
A)  LLP 
B)  limited liability partnership 
C)  either a.or b. 
D)  neither a.nor b.

Question 6

An LLC is a legal entity with the authority to conduct business in its own name.

Accepted Answer

A) True 
 B)False

Question 7

When no limited partnership certificate is filed,what is the result?

Accepted Answer

A)  Only limited partners are fully liable. 
B)  Only general partners are fully liable. 
C)  Limited partners retain their limited liability. 
D)  Both general and limited partners are fully liable. 
A)  Only limited partners are fully liable. 
B)  Only general partners are fully liable. 
C)  Limited partners retain their limited liability. 
D)  Both general and limited partners are fully liable.

Question 8

Every limited partnership must have at least one general partner.

Accepted Answer

A) True 
 B)False

Question 9

The spread of limited liability corporation statutes resulted from:

Accepted Answer

A)  a United States Supreme Court decision. 
B)  an Internal Revenue Service ruling. 
C)  a Wyoming Supreme Court decision. 
D)  a Securities and Exchange Commission ruling. 
A)  a United States Supreme Court decision. 
B)  an Internal Revenue Service ruling. 
C)  a Wyoming Supreme Court decision. 
D)  a Securities and Exchange Commission ruling.

Question 10

The partners who manage the limited partnership and are personally liable for the firm debts are __________ partners.

Accepted Answer

A)  general 
B)  active 
C)  licensed 
D)  unreserved 
A)  general 
B)  active 
C)  licensed 
D)  unreserved

Question 11

A limited liability company is identical to a Subchapter S corporation.

Accepted Answer

A) True 
 B)False

Question 12

A limited liability company may be managed directly by the owners.

Accepted Answer

A) True 
 B)False

Question 13

A limited liability company:

Accepted Answer

A)  is the same type of business entity as a "Subchapter S" corporation. 
B)  has no restriction on the number of owners. 
C)  is taxed in a manner similar to that of a corporation. 
D)  has unlimited life regardless of what happens with any individual member. 
A)  is the same type of business entity as a "Subchapter S" corporation. 
B)  has no restriction on the number of owners. 
C)  is taxed in a manner similar to that of a corporation. 
D)  has unlimited life regardless of what happens with any individual member.

Question 14

A general partner within a limited partnership may be a corporation.

Accepted Answer

A) True 
 B)False

Question 15

A limited partnership can be formed by one (1)or more __________ partners and one (1)or more __________ partners.

Accepted Answer

A)  unreserved;reserved 
B)  active;silent 
C)  licensed;unlicensed 
D)  general;limited 
A)  unreserved;reserved 
B)  active;silent 
C)  licensed;unlicensed 
D)  general;limited

Question 16

Members of a limited liability company share profits:

Accepted Answer

A)  according to their status (general or limited)in the firm. 
B)  in proportion to their contribution of services. 
C)  in proportion to their capital contribution. 
D)  according to the terms of the operating agreement. 
A)  according to their status (general or limited)in the firm. 
B)  in proportion to their contribution of services. 
C)  in proportion to their capital contribution. 
D)  according to the terms of the operating agreement.

Question 17

A limited liability company may hold property in its own name.

Accepted Answer

A) True 
 B)False

Question 18

Management of an LLC is vested in its:

Accepted Answer

A)  members 
B)  partners 
C)  shareholders 
D)  managers 
A)  members 
B)  partners 
C)  shareholders 
D)  managers

Question 19

Most limited liability company statutes provide that a LLC will dissolve:

Accepted Answer

A)  by the consent of the members. 
B)  upon the death of a member. 
C)  upon the expulsion of a member. 
D)  all of the above. 
A)  by the consent of the members. 
B)  upon the death of a member. 
C)  upon the expulsion of a member. 
D)  all of the above.

Question 20

Limited partners may contribute cash or property as their capital contributions.

Accepted Answer

A) True 
 B)False

Exam 43: LPs, LLCs, and LLPs

Limited liability partnership statues are designed to permit the conversion of existing general partnerships into limited liability partnerships.

A limited liability company:

A limited partner can never lose money.

A limited liability partnership must include which of the following terms in its name?

An LLC is a legal entity with the authority to conduct business in its own name.

When no limited partnership certificate is filed,what is the result?

Every limited partnership must have at least one general partner.

The spread of limited liability corporation statutes resulted from:

The partners who manage the limited partnership and are personally liable for the firm debts are __________ partners.

A limited liability company is identical to a Subchapter S corporation.

A limited liability company may be managed directly by the owners.

A limited liability company:

A general partner within a limited partnership may be a corporation.

A limited partnership can be formed by one (1)or more __________ partners and one (1)or more __________ partners.

Members of a limited liability company share profits:

A limited liability company may hold property in its own name.

Management of an LLC is vested in its:

Most limited liability company statutes provide that a LLC will dissolve:

Limited partners may contribute cash or property as their capital contributions.

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A limited partnership can be formed by one (1)or more partners and one (1)or more partners.