Exam 38: B: Limited Liability Companies Special Business Forms

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

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

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

Owen,Petunia,Quentin,and Rita combine to finance the building of Surfside Stores,a waterfront shopping mall.Their selected form of business organization is an in?vestment group,or

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

The members of a joint venture have more implied and apparent authority than the partners in a partnership.

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

In many states,an operating agreement is not required for a limited liability company to exist.

Esteban and Florian want to form a limited liability company (LLC)to manage their business,Gordian Nuts.LLC statutes have been adopted in

A limited liability company,as an entity,pays no taxes.

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

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.

Vela and other farmers in Washington County form a business organi?zation to provide,without profit,an economic service to its members.This is

Binary Corporation and Coda,Inc. ,two software firms,wish to combine their research and development capabilities to make a special,limited edition computer game.The appropriate legal en?tity for this project is most likely

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

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

Accumulated Capital Corporation and Business Funds,Inc. ,form a joint stock company.The ownership of a joint stock company is repre?sented by

A limited liability company is not a citizen of any state.

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

A business trust resembles a corporation.