Exam 38: A: Limited Liability Companies Special Business Forms

The members of a limited liability company (LLC)are personally liable for the wrongful acts or omissions of the LLC.

Chocolate Sundry LLC's members and managers are Devlin,Effie,and Flavia.After Devlin's relationship to the firm ends,Effie and Flavia agree to discontinue the business.This is

A limited liability company can be taxed as a corporation.

Most states apply their limited liability company (LLC)statutes to an LLC formed in another state.

Jade,Kelly,and Lila organize a nonprofit business-JKL Markets,Inc.-to buy groceries from wholesalers and sell them to consumers who buy a membership in JKL.Because the firm is a nonprofit entity,it is able to sell the groceries for less than a commercial grocer could.What form of business organization is JKL Markets? Is it significant that JKL is incorporated?

Evelyn is a beneficiary of a business trust.As a beneficiary,she is required to

Kris is a member of Laboratory Services,LLC,a limited liability company.Kris can participate in the firm's management

Consumers in Bayside City form a business organization to provide,without profit,an economic service to its members.This is

A limited liability company can sue or be sued,enter into contracts,and hold title to property.

A limited liability company must be managed by its members.

Shae's Café and Tommy's Grill form a joint venture.Shae can participate in the venture's management

For federal income tax purposes,one-member limited liability companies are automatically taxed as sole proprietorships.

Capital Investment Corporation and Durable Goods,Inc. ,form a business trust.Excel Company and Finest Corporation form a joint stock company.Growing Acres Corporation and Hybrid Farms,Inc. ,form an in?corporated cooperative.What features do these combinations of business organization have in common?

Jessica's Jumpin' Jelly Beans,LLC,is a limited liability company.Unless indi?cated otherwise on Jessica's federal tax form,the firm will be taxed as

Most limited liability company statutes specify how members' voting rights must be apportioned.

Limited liability companies (LLCs)are governed by a federal LLC statute.

Exotic Stuff Company and First Pier,Inc. ,form a business organiza?tion to engage in importing and exporting.Its property is held in the names of the members and its shareholders have personal liability.This business or?ganization is

Loni,Michel,and Nita are investors in Oceanic Exploration,a busi?ness trust.A business trust is managed by its

Unless a limited liability company indicates otherwise,the Internal Revenue Service automatically taxes it as a partnership.

A cooperative must be incorporated.