Question 1

Phone Apps LLC is forming as a limited liability company. To become a manager-managed firm, Phone Apps' members must

Accepted Answer

A)   refrain from participating in the firm's operations.
B)   form a joint venture.
C)   elect to apply the principles of partnership law to their firm.
D)   expressly adopt the corporate form of business organization.E) A) and C)
F) A) and B)

Question 2

A limited liability company that wants to distribute profits to its members could avoid "double taxation" by electing to be taxed as

Accepted Answer

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

Question 3

Bayside Restaurant LLC is a limited liability company. Its sole member is Conrad. For federal income tax purposes, unless the firm indicates otherwise, it 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 4

To form a limited liability company, articles of organization must be filed with an attorney's office.

Accepted Answer

A) True 
 B)False

Question 5

Licensed fishing outfits in Bayou City form a business organization to provide, without profit, an economic service to its members. This is

Accepted Answer

A)   a business trust.
B)   a cooperative.
C)   a corporation.
D)   a joint stock company.E) C) and D)
F) B) and D)

Question 6

Choosing a business organizational form that limits its owners' liability may lead to greater profits for the firm.

Accepted Answer

A) True 
 B)False

Question 7

Grape Vineyards LLC, the members of which include Howie and Ilya, can hold title to property because as a limited liability company the firm is

Accepted Answer

A)   the sum of its members.
B)   a non-entity
C)   a legal person.
D)   a holding company.E) A) and C)
F) A) and B)

Question 8

Global Capital S.A. is a foreign investor. With respect to the operations of a limited liability company in the United States, Global can

Accepted Answer

A)   become a member, but cannot otherwise participate.
B)   become a member.
C)   not become a member, but can participate.
D)   not become a member or participate.E) A) and C)
F) None of the above

Question 9

Oil Inc. and Petro Corporation form a joint venture to design and test petroleum storage facilities and equipment. When a dispute arises, Oil files a suit against Petro. The court is most likely to apply the same principles to this joint venture as it applies to

Accepted Answer

A)   sole proprietorships.
B)   limited liability companies.
C)   corporations.
D)   partnerships.E) None of the above
F) A) and B)

Question 10

A cooperative can be incorporated.

Accepted Answer

A) True 
 B)False

Question 11

Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm

Accepted Answer

A)   was formed.
B)   is headquartered.
C)   does business.
D)   will receive consistent treatment.E) B) and C)
F) C) and D)

Question 12

Dairy Products, Inc., and Eden Farms Corporation form a joint venture to make and test-market Frosty Ice Cream. If this joint venture is like most joint ventures, it will continue

Accepted Answer

A)   for an implied duration of not more than six months.
B)   for a single project only.
C)   for an express duration of not more than one year.
D)   in perpetuity.E) B) and C)
F) A) and D)

Exam 32: Limited Liability Companies and Special Business Forms

To form a limited liability company, articles of organization must be filed with an attorney's office.

Correct Answer
verified

A limited liability company that wants to distribute profits to its members could avoid "double taxation" by electing to be taxed as

Correct Answer
verified

Dairy Products, Inc., and Eden Farms Corporation form a joint venture to make and test-market Frosty Ice Cream. If this joint venture is like most joint ventures, it will continue

Correct Answer
verified

Bayside Restaurant LLC is a limited liability company. Its sole member is Conrad. For federal income tax purposes, unless the firm indicates otherwise, it will automatically be taxed as

Correct Answer
verified

Global Capital S.A. is a foreign investor. With respect to the operations of a limited liability company in the United States, Global can

Correct Answer
verified

A cooperative can be incorporated.

Correct Answer
verified

Licensed fishing outfits in Bayou City form a business organization to provide, without profit, an economic service to its members. This is

Correct Answer
verified

Phone Apps LLC is forming as a limited liability company. To become a manager-managed firm, Phone Apps' members must

Correct Answer
verified

Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm

Correct Answer
verified

Choosing a business organizational form that limits its owners' liability may lead to greater profits for the firm.

Correct Answer
verified

Grape Vineyards LLC, the members of which include Howie and Ilya, can hold title to property because as a limited liability company the firm is

Correct Answer
verified

Oil Inc. and Petro Corporation form a joint venture to design and test petroleum storage facilities and equipment. When a dispute arises, Oil files a suit against Petro. The court is most likely to apply the same principles to this joint venture as it applies to

Correct Answer
verified

Exam 32: Limited Liability Companies and Special Business Forms

To form a limited liability company, articles of organization must be filed with an attorney's office.

Correct AnswerverifiedShow Answer

A limited liability company that wants to distribute profits to its members could avoid "double taxation" by electing to be taxed as

Correct AnswerverifiedShow Answer

Dairy Products, Inc., and Eden Farms Corporation form a joint venture to make and test-market Frosty Ice Cream. If this joint venture is like most joint ventures, it will continue

Correct AnswerverifiedShow Answer

Bayside Restaurant LLC is a limited liability company. Its sole member is Conrad. For federal income tax purposes, unless the firm indicates otherwise, it will automatically be taxed as

Correct AnswerverifiedShow Answer

Global Capital S.A. is a foreign investor. With respect to the operations of a limited liability company in the United States, Global can

Correct AnswerverifiedShow Answer

A cooperative can be incorporated.

Correct AnswerverifiedShow Answer

Licensed fishing outfits in Bayou City form a business organization to provide, without profit, an economic service to its members. This is

Correct AnswerverifiedShow Answer

Phone Apps LLC is forming as a limited liability company. To become a manager-managed firm, Phone Apps' members must

Correct AnswerverifiedShow Answer

Paving LLC is a foreign limited liability company in the state of Ohio. In dealing with Paving, Ohio will apply the law of the state where the firm

Correct AnswerverifiedShow Answer

Choosing a business organizational form that limits its owners' liability may lead to greater profits for the firm.

Correct AnswerverifiedShow Answer

Grape Vineyards LLC, the members of which include Howie and Ilya, can hold title to property because as a limited liability company the firm is

Correct AnswerverifiedShow Answer

Oil Inc. and Petro Corporation form a joint venture to design and test petroleum storage facilities and equipment. When a dispute arises, Oil files a suit against Petro. The court is most likely to apply the same principles to this joint venture as it applies to

Correct AnswerverifiedShow Answer

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