Question 1

Cherry Creek Development,LP,is a limited partnership that invests in residential real estate projects.Its limited partners include more than 150 sophisticated investors and investment professionals.A Cherry Creek limited partner loses his or her limited liability if he or she​

Accepted Answer

A)  participates in the firm's management.
B)  does not participate in the firm's management.
C)  invests in a project that Cherry Creek has declined.
D)  votes to sell or dissolve the firm.E) A) and B)
F) B) and C)

Question 2

Nick and Orlando are limited partners in Port City Exports,a limited partnership.To avoid personal liability for the firm's obligations,they must not​

Accepted Answer

A)  acquire an interest in the firm.
B)  contribute property to the firm.
C)  engage in activities independent of the firm's business.
D)  participate in the firm's management.E) A) and B)
F) All of the above

Question 3

Ben is a general partner in Cut-Rate Shipping,LLLP,a limited liability limited partnership,which cannot pay its debts.Ben is personally liable for the debts​

Accepted Answer

A)  in proportion to the number of partners in the firm.
B)  to no extent.
C)  to the extent of his capital contribution.
D)  to the full extent.E) None of the above
F) A) and B)

Question 4

Brent and Char are limited partners in Dental Center,a limited partnership.In terms of the firm's books and information regarding partnership business,Brent and Char are entitled to​

Accepted Answer

A)  access in proportion to their participation in management of the firm.
B)  access to the parts that directly relate to their capital contributions.
C)  no access.
D)  complete access.E) A) and B)
F) A) and D)

Question 5

A limited partnership can be dissolved by court decree.

Accepted Answer

A) True 
 B)False

Question 6

Jess and Keri are members of Livewire LLC,a limited liability company.In most situations,with respect to Livewire's debts,Jess and Keri are shielded from​

Accepted Answer

A)  all liability.
B)  no liability.
C)  personal liability.
D)  "corporate veil" liability.E) B) and C)
F) A) and D)

Question 7

Foreign investors cannot participate in a limited liability company.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  capital contributions.
B)  participation in management.
C)  the number of members.
D)  members' seniority.E) A) and B)
F) None of the above

Question 9

In a limited partnership,a general partner's dissociation from the firm normally will lead to dissolution unless all partners agree to continue the business.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  the applicable state LLC statute.
B)  the Uniform Limited Liability Company Act.
C)  the principles of partnership law.
D)  the federal LLC statutes.E) All of the above
F) B) and D)

Question 11

Marie.Nicole,and Olga want to form Pharma Sales,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?​

Accepted Answer

The provisions of a limited liability co...

Question 12

Custom Auto,LLC,is a limited liability company.Its members include Dennis and Emma.Like other LLCs with more than one member,unless indicated otherwise,the firm will automatically be taxed as​

Accepted Answer

A)  a person.
B)  a corporation.
C)  a sole proprietorship.
D)  a partnership.E) A) and C)
F) A) and D)

Question 13

Commercial Credit & Finance is a limited partner-ship.Derry,Eleni,and Frey are the general partners.Derry dies.The partnership can​

Accepted Answer

A)  continue only after a distribution of its assets.
B)  continue only as a general partnership.
C)  continue only if Eleni and Frey consent.
D)  not continue because Derry's death dissolves the firm.E) None of the above
F) B) and C)

Question 14

Beth and Carol want to form a limited liability company to manage their business,DoReMi Music.Their state has adopted the Uniform Limited Liability Company Act,which has been adopted in​

Accepted Answer

A)  all states.
B)  no state.
C)  less than one-fifth of the states.
D)  about half of the states.E) None of the above
F) A) and B)

Question 15

Gas,LP,is a limited partnership to which its partners have contributed capital.Gas's creditors include Piping,Inc.On Gas's dissolution,its assets will be distributed to pay​

Accepted Answer

A)  the partners and Piping proportionately.
B)  the partners before Piping.
C)  Piping before the partners.
D)  neither Piping nor the partners.E) B) and C)
F) None of the above

Question 16

To form a limited liability company,articles of organization must be filed with the federal Small Business Administration.

Accepted Answer

A) True 
 B)False

Question 17

Roma and Swain are partners in Roma & Swain Attorneys,LLP,a limited liability partnership.Roma supervises their firm's associate Taylor,who negligently fails to appear in court on behalf of Umberto,a client.Liability to Umberto rests only with​

Accepted Answer

A)  Roma and Taylor.
B)  Roma.
C)  Taylor.
D)  Roma and Swain.E) A) and B)
F) B) and D)

Question 18

Every limited liability company is a citizen of every state.

Accepted Answer

A) True 
 B)False

Question 19

Generally,a dissociated member of a limited liability company (LLC)has the right to buy his or her interest in the LLC from the other members.

Accepted Answer

A) True 
 B)False

Question 20

Jim is considering forms of business organization,including the limited liability company (LLC) ,for his business-Kettle Popt-Korn.Most states require that an LLC have​

Accepted Answer

A)  a corporate veil,but no minimum number of participants.
B)  at least one member.
C)  at least two members.
D)  at least one non-member manager.E) B) and C)
F) A) and B)

Exam 17: Limited Liability Business Forms

Generally,a dissociated member of a limited liability company (LLC)has the right to buy his or her interest in the LLC from the other members.

Correct AnswerverifiedShow Answer

Jim is considering forms of business organization,including the limited liability company (LLC) ,for his business-Kettle Popt-Korn.Most states require that an LLC have​

Correct AnswerverifiedShow Answer

In a limited partnership,a general partner's dissociation from the firm normally will lead to dissolution unless all partners agree to continue the business.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Foreign investors cannot participate in a limited liability company.

Correct AnswerverifiedShow Answer

Commercial Credit & Finance is a limited partner-ship.Derry,Eleni,and Frey are the general partners.Derry dies.The partnership can​

Correct AnswerverifiedShow Answer

Cherry Creek Development,LP,is a limited partnership that invests in residential real estate projects.Its limited partners include more than 150 sophisticated investors and investment professionals.A Cherry Creek limited partner loses his or her limited liability if he or she​

Correct AnswerverifiedShow Answer

Every limited liability company is a citizen of every state.

Correct AnswerverifiedShow Answer

To form a limited liability company,articles of organization must be filed with the federal Small Business Administration.

Correct AnswerverifiedShow Answer

Jess and Keri are members of Livewire LLC,a limited liability company.In most situations,with respect to Livewire's debts,Jess and Keri are shielded from​

Correct AnswerverifiedShow Answer

Nick and Orlando are limited partners in Port City Exports,a limited partnership.To avoid personal liability for the firm's obligations,they must not​

Correct AnswerverifiedShow Answer

Brent and Char are limited partners in Dental Center,a limited partnership.In terms of the firm's books and information regarding partnership business,Brent and Char are entitled to​

Correct AnswerverifiedShow Answer

Marie.Nicole,and Olga want to form Pharma Sales,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?​

Correct AnswerverifiedThe provisions of a limited liability co...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Ben is a general partner in Cut-Rate Shipping,LLLP,a limited liability limited partnership,which cannot pay its debts.Ben is personally liable for the debts​

Correct AnswerverifiedShow Answer

Custom Auto,LLC,is a limited liability company.Its members include Dennis and Emma.Like other LLCs with more than one member,unless indicated otherwise,the firm will automatically be taxed as​

Correct AnswerverifiedShow Answer

A limited partnership can be dissolved by court decree.

Correct AnswerverifiedShow Answer

Roma and Swain are partners in Roma & Swain Attorneys,LLP,a limited liability partnership.Roma supervises their firm's associate Taylor,who negligently fails to appear in court on behalf of Umberto,a client.Liability to Umberto rests only with​

Correct AnswerverifiedShow Answer

Gas,LP,is a limited partnership to which its partners have contributed capital.Gas's creditors include Piping,Inc.On Gas's dissolution,its assets will be distributed to pay​

Correct AnswerverifiedShow Answer

Beth and Carol want to form a limited liability company to manage their business,DoReMi Music.Their state has adopted the Uniform Limited Liability Company Act,which has been adopted in​

Correct AnswerverifiedShow Answer

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Jim is considering forms of business organization,including the limited liability company (LLC) ,for his business-Kettle Popt-Korn.Most states require that an LLC have

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Commercial Credit & Finance is a limited partner-ship.Derry,Eleni,and Frey are the general partners.Derry dies.The partnership can

Correct Answer
verified

Cherry Creek Development,LP,is a limited partnership that invests in residential real estate projects.Its limited partners include more than 150 sophisticated investors and investment professionals.A Cherry Creek limited partner loses his or her limited liability if he or she

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Jess and Keri are members of Livewire LLC,a limited liability company.In most situations,with respect to Livewire's debts,Jess and Keri are shielded from

Correct Answer
verified

Nick and Orlando are limited partners in Port City Exports,a limited partnership.To avoid personal liability for the firm's obligations,they must not

Correct Answer
verified

Brent and Char are limited partners in Dental Center,a limited partnership.In terms of the firm's books and information regarding partnership business,Brent and Char are entitled to

Correct Answer
verified

Marie.Nicole,and Olga want to form Pharma Sales,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?

Correct Answer
verified
The provisions of a limited liability co...
View Answer

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

Correct Answer
verified

Ben is a general partner in Cut-Rate Shipping,LLLP,a limited liability limited partnership,which cannot pay its debts.Ben is personally liable for the debts

Correct Answer
verified

Custom Auto,LLC,is a limited liability company.Its members include Dennis and Emma.Like other LLCs with more than one member,unless indicated otherwise,the firm will automatically be taxed as

Correct Answer
verified

Correct Answer
verified

Roma and Swain are partners in Roma & Swain Attorneys,LLP,a limited liability partnership.Roma supervises their firm's associate Taylor,who negligently fails to appear in court on behalf of Umberto,a client.Liability to Umberto rests only with

Correct Answer
verified

Gas,LP,is a limited partnership to which its partners have contributed capital.Gas's creditors include Piping,Inc.On Gas's dissolution,its assets will be distributed to pay

Correct Answer
verified

Beth and Carol want to form a limited liability company to manage their business,DoReMi Music.Their state has adopted the Uniform Limited Liability Company Act,which has been adopted in

Correct Answer
verified