Question 1

Fact Pattern 17-1
Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership.
-Refer to Fact Pattern 17-1.Carlos's assignment of his interest in Eastside to Good Credit Corporation results in​

Accepted Answer

A)  nothing with respect to Eastside's existence.
B)  the maturity of Eastside's debts.
C)  the suspension of Eastside's business.
D)  the termination of Eastside's legal existence.E) None of the above
F) A) and D)

Question 2

Data Analytics,LLC,is a limited liability company.Unless the articles of organization specify otherwise,it will most likely be assumed that the firm is​

Accepted Answer

A)  member-managed.
B)  manager-managed.
C)  an aggregate of member and non-member managers.
D)  run by an outside professional management group.E) None of the above
F) A) and D)

Question 3

Limited liability companies cannot enter into contracts or hold title to property.

Accepted Answer

A) True 
 B)False

Question 4

Most states apply to a limited liability company (LLC)formed in another state the law of the state where the LLC currently does business.

Accepted Answer

A) True 
 B)False

Question 5

A limited liability company is a citizen of every state.

Accepted Answer

A) True 
 B)False

Question 6

A limited liability company can be taxed as a corporation.

Accepted Answer

A) True 
 B)False

Question 7

In a limited partnership,limited partners do not have the same rights as general partners to participate in management.

Accepted Answer

A) True 
 B)False

Question 8

Smith & Jones,Accountants,is a limited liability partnership (LLP) .The major features of an LLP are that it limits the personal liability of the partners and​

Accepted Answer

A)  it allows the partnership to continue as a pass-through tax entity.
B)  LLP statutes do not vary from state to state.
C)  it can only do business in the state in which it was formed.
D)  only a few states have enacted LLP statutes.E) None of the above
F) A) and B)

Question 9

The alter-ego theory cannot be applied to a limited liability company.

Accepted Answer

A) True 
 B)False

Question 10

Nell is considering forms of business organization for Optic Center,a medical eye clinic.An advantage of a limited liability partnership is that,depending on the applicable state statute,partners can avoid personal liability for​

Accepted Answer

A)  their own wrongful acts.
B)  any partnership obligation.
C)  their own and other partners' wrongful acts.
D)  none of the choices.E) C) and D)
F) B) and D)

Question 11

Members of a limited liability company (LLC)can stipulate in their operating agreement how managers will be chosen or removed.

Accepted Answer

A) True 
 B)False

Question 12

Bee Hive Honey,LLC's members include Charlie and Donna.For purposes of suing and being sued,Bee Hive Honey is​

Accepted Answer

A)  an aggregate of its members.
B)  a non-entity
C)  a legal entity apart from its members.
D)  a non-participating third party.E) C) and D)
F) A) and D)

Exam 17: Limited Liability Business Forms

A limited liability company can be taxed as a corporation.

Correct Answer
verified

Data Analytics,LLC,is a limited liability company.Unless the articles of organization specify otherwise,it will most likely be assumed that the firm is

Correct Answer
verified

The alter-ego theory cannot be applied to a limited liability company.

Correct Answer
verified

Fact Pattern 17-1 Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership. -Refer to Fact Pattern 17-1.Carlos's assignment of his interest in Eastside to Good Credit Corporation results in

Correct Answer
verified

In a limited partnership,limited partners do not have the same rights as general partners to participate in management.

Correct Answer
verified

Nell is considering forms of business organization for Optic Center,a medical eye clinic.An advantage of a limited liability partnership is that,depending on the applicable state statute,partners can avoid personal liability for

Correct Answer
verified

A limited liability company is a citizen of every state.

Correct Answer
verified

Members of a limited liability company (LLC)can stipulate in their operating agreement how managers will be chosen or removed.

Correct Answer
verified

Smith & Jones,Accountants,is a limited liability partnership (LLP) .The major features of an LLP are that it limits the personal liability of the partners and

Correct Answer
verified

Bee Hive Honey,LLC's members include Charlie and Donna.For purposes of suing and being sued,Bee Hive Honey is

Correct Answer
verified

Limited liability companies cannot enter into contracts or hold title to property.

Correct Answer
verified

Most states apply to a limited liability company (LLC)formed in another state the law of the state where the LLC currently does business.

Correct Answer
verified

Exam 17: Limited Liability Business Forms

A limited liability company can be taxed as a corporation.

Correct AnswerverifiedShow Answer

Data Analytics,LLC,is a limited liability company.Unless the articles of organization specify otherwise,it will most likely be assumed that the firm is​

Correct AnswerverifiedShow Answer

The alter-ego theory cannot be applied to a limited liability company.

Correct AnswerverifiedShow Answer

Fact Pattern 17-1 Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership. -Refer to Fact Pattern 17-1.Carlos's assignment of his interest in Eastside to Good Credit Corporation results in​

Correct AnswerverifiedShow Answer

In a limited partnership,limited partners do not have the same rights as general partners to participate in management.

Correct AnswerverifiedShow Answer

Nell is considering forms of business organization for Optic Center,a medical eye clinic.An advantage of a limited liability partnership is that,depending on the applicable state statute,partners can avoid personal liability for​

Correct AnswerverifiedShow Answer

A limited liability company is a citizen of every state.

Correct AnswerverifiedShow Answer

Members of a limited liability company (LLC)can stipulate in their operating agreement how managers will be chosen or removed.

Correct AnswerverifiedShow Answer

Smith & Jones,Accountants,is a limited liability partnership (LLP) .The major features of an LLP are that it limits the personal liability of the partners and​

Correct AnswerverifiedShow Answer

Bee Hive Honey,LLC's members include Charlie and Donna.For purposes of suing and being sued,Bee Hive Honey is​

Correct AnswerverifiedShow Answer

Limited liability companies cannot enter into contracts or hold title to property.

Correct AnswerverifiedShow Answer

Most states apply to a limited liability company (LLC)formed in another state the law of the state where the LLC currently does business.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Data Analytics,LLC,is a limited liability company.Unless the articles of organization specify otherwise,it will most likely be assumed that the firm is

Correct Answer
verified

Correct Answer
verified

Fact Pattern 17-1 Brad is a general partner,and Carlos and Dora are limited partners,in Eastside Physicians,a medical clinic and limited partnership. -Refer to Fact Pattern 17-1.Carlos's assignment of his interest in Eastside to Good Credit Corporation results in

Correct Answer
verified

Correct Answer
verified

Nell is considering forms of business organization for Optic Center,a medical eye clinic.An advantage of a limited liability partnership is that,depending on the applicable state statute,partners can avoid personal liability for

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Smith & Jones,Accountants,is a limited liability partnership (LLP) .The major features of an LLP are that it limits the personal liability of the partners and

Correct Answer
verified

Bee Hive Honey,LLC's members include Charlie and Donna.For purposes of suing and being sued,Bee Hive Honey is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified