Exam 38: Limited Liability Companies Special Business Forms

Build-Rite Construction Corporation and Deals-R-Us, Inc., combine their efforts to build an entertainment complex. Their form of business organization is

A joint venturer can be held personally liable for the venture's debts.

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

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

Alpha Communications, a partnership, publishes consumer periodicals, including Science Today. Beta Publications, also a partnership, publishes professional periodicals, including Technology Review. Alpha and Beta agree to pool their resources in a one-time deal to print and market a book, Unlimited Future. In contracting with Gamma Printing Supplies, Inc., for paper to print the book, Alpha commits fraud. In contracting with Delta Literary Agency for articles to use in Technology Review, Beta commits fraud. Gamma and Delta file suits against Alpha and Beta. What type of business organization has Alpha and Beta formed To whom, if anyone, is Alpha liable To whom, if anyone, is Beta liable

A joint venture resembles a partnership but is taxed like a corporation.

A business trust resembles a corporation.

A limited liability company that has only one member cannot be taxed.

Delta Music Company and eDistribution & Marketing Corporation form a joint stock company. A joint stock company can be formed for, at the most,

A limited liability company as an entity is not liable for the wrongful acts or omissions of its members.

CPA Accounting, LLC, is a limited liability company. If the law in CPA's state is like the law in most states, unless the members have agreed otherwise, participants in the firm's management will be considered to include

Jay is a member of Kappa, LLC, a limited liability company. Jay is liable for Kappa's debts

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

State limited liability company statutes are uniform.

When a member dissociates form a limited liability company, the member's duty of loyalty continues.

Sustainable Café LLC is a limited liability company. Like any other LLC, unless Sustainable Café chooses otherwise, the firm will be taxed as

Rafaela Art Gallery and Sequoia Exhibitions form a joint venture. When a dispute arises, Rafaela files a suit against Sequoia. The court is most likely to apply the same principles to this joint venture as it applies to

B2B, LLC, is a limited liability company. Among its members, a dispute arises that the operating agreement does not cover. The dispute is governed by

Petra. Queenie, and Randall want to form Sales-to-Infinity, LLC (limited liability company). What should they provide in their operating agreement If they fail to include some important operating details, what determines these details

The liability of the members of a limited liability company is limited to the amount of their investments.