Exam 43: LPs, LLCs, and LLPs

Alice,Betty,and Cathy are interested in forming a business venture.Alice is quite wealthy and is ready to contribute money to the venture.Betty has a degree in business from an excellent university,worked for five years as a manager in a major corporation,and currently is a leadership/management consultant.Cathy is a scientist who has developed a process that will,according to her,"revolutionize cancer treatment throughout the world." Alice,Betty,and Cathy believe it is in their best interest to form a general partnership.Do you agree? Is there a more appropriate form of business you might recommend?

The limited liability company combines the tax advantage of the partnership with the limited liability feature of the corporate form of business organization.

Courts tend to resolve ambiguities in limited partnership agreements against the general partners.

A limited liability company pays federal income tax.

The owners of a limited liability company are known as:

Limited liability companies may be formed without filing formal articles of organization with the secretary of state.

It is impossible to form a business in a manner that allows for single taxation and limited liability.

Both general partnerships and limited partnerships are created only through the process of executing a certificate.

In a limited partnership,general partners are not responsible for the debts of the firm.

It is expected that in the future,the limited liability company will in many instances replace which of the following forms of business ownership?

Which form of business entity was created primarily to shield innocent owners,particularly those in professions,from malpractice liability generated from other owners in the firm?

All owners of a limited liability company are known as officers.