Question 1

Croissants Corporation and Donuts Company transfer their assets to Edibles Inc., which manages the assets and distributes the profits to Croissants and Donuts. This arrangement is

Accepted Answer

A)  a business trust.
B)  none of the choices.
C)  a joint venture.
D)  a syndicate.E) All of the above
F) B) and C)

Question 2

Rocket Corporation and Star Inc. wish to combine their capabilities to launch a single flight to the moon. The appropriate legal entity for this project is most likely

Accepted Answer

A)  a business trust.
B)  a joint stock company.
C)  a joint venture.
D)  a syndicate.E) A) and B)
F) A) and C)

Question 3

If the members of a limited liability company want to reinvest profits in the business, they may opt for the firm to be taxed as a corporation.

Accepted Answer

A) True 
 B)False

Question 4

The management of a limited liability company must include at least one of the members.

Accepted Answer

A) True 
 B)False

Question 5

Valu Food Market is an incorporated cooperative. Like other incorporated cooperatives, Valu Food distributes profits to its owners on the basis of

Accepted Answer

A)  the amount of capital they contribute.
B)  the degree to which they participate in management.
C)  their transactions with the cooperative.
D)  the requirements of the state in which it was incorporated.E) B) and C)
F) B) and D)

Question 6

Like a partner in a partnership, the member of a limited liability company has the power to dissociate from the firm at any time, but may not have the right.

Accepted Answer

A) True 
 B)False

Question 7

The members of a limited liability company have considerable flexibility in managing the business of the firm.

Accepted Answer

A) True 
 B)False

Question 8

Like partners, unless otherwise agreed, joint venturers have an equal voice in controlling a venture-related project.

Accepted Answer

A) True 
 B)False

Question 9

With respect to taxes imposed on limited liability companies, most states

Accepted Answer

A)  follow the federal rules.
B)  exempt the firms from federal taxes.
C)  permit the firms to choose whether to follow the federal rules.
D)  offer a hybrid tax regime.E) A) and B)
F) A) and C)

Question 10

When the promoter of a limited liability company enters into a preformation contract on the firm's behalf, the company must adopt the contract to enforce it.

Accepted Answer

A) True 
 B)False

Question 11

A limited liability company is a citizen only of the state in which it was formed.

Accepted Answer

A) True 
 B)False

Question 12

If a limited liability company is not meeting the economic purpose for which it was established, a court may order the dissolution of the firm.

Accepted Answer

A) True 
 B)False

Exam 36: Limited Liability Companies and Special Business Forms

If the members of a limited liability company want to reinvest profits in the business, they may opt for the firm to be taxed as a corporation.

Correct Answer
verified

When the promoter of a limited liability company enters into a preformation contract on the firm's behalf, the company must adopt the contract to enforce it.

Correct Answer
verified

Valu Food Market is an incorporated cooperative. Like other incorporated cooperatives, Valu Food distributes profits to its owners on the basis of

Correct Answer
verified

With respect to taxes imposed on limited liability companies, most states

Correct Answer
verified

Like partners, unless otherwise agreed, joint venturers have an equal voice in controlling a venture-related project.

Correct Answer
verified

A limited liability company is a citizen only of the state in which it was formed.

Correct Answer
verified

The management of a limited liability company must include at least one of the members.

Correct Answer
verified

Rocket Corporation and Star Inc. wish to combine their capabilities to launch a single flight to the moon. The appropriate legal entity for this project is most likely

Correct Answer
verified

Croissants Corporation and Donuts Company transfer their assets to Edibles Inc., which manages the assets and distributes the profits to Croissants and Donuts. This arrangement is

Correct Answer
verified

Like a partner in a partnership, the member of a limited liability company has the power to dissociate from the firm at any time, but may not have the right.

Correct Answer
verified

The members of a limited liability company have considerable flexibility in managing the business of the firm.

Correct Answer
verified

If a limited liability company is not meeting the economic purpose for which it was established, a court may order the dissolution of the firm.

Correct Answer
verified

Exam 36: Limited Liability Companies and Special Business Forms

If the members of a limited liability company want to reinvest profits in the business, they may opt for the firm to be taxed as a corporation.

Correct AnswerverifiedShow Answer

When the promoter of a limited liability company enters into a preformation contract on the firm's behalf, the company must adopt the contract to enforce it.

Correct AnswerverifiedShow Answer

Valu Food Market is an incorporated cooperative. Like other incorporated cooperatives, Valu Food distributes profits to its owners on the basis of

Correct AnswerverifiedShow Answer

With respect to taxes imposed on limited liability companies, most states

Correct AnswerverifiedShow Answer

Like partners, unless otherwise agreed, joint venturers have an equal voice in controlling a venture-related project.

Correct AnswerverifiedShow Answer

A limited liability company is a citizen only of the state in which it was formed.

Correct AnswerverifiedShow Answer

The management of a limited liability company must include at least one of the members.

Correct AnswerverifiedShow Answer

Rocket Corporation and Star Inc. wish to combine their capabilities to launch a single flight to the moon. The appropriate legal entity for this project is most likely

Correct AnswerverifiedShow Answer

Croissants Corporation and Donuts Company transfer their assets to Edibles Inc., which manages the assets and distributes the profits to Croissants and Donuts. This arrangement is

Correct AnswerverifiedShow Answer

Like a partner in a partnership, the member of a limited liability company has the power to dissociate from the firm at any time, but may not have the right.

Correct AnswerverifiedShow Answer

The members of a limited liability company have considerable flexibility in managing the business of the firm.

Correct AnswerverifiedShow Answer

If a limited liability company is not meeting the economic purpose for which it was established, a court may order the dissolution of the firm.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified