Exam 30: Limited Liability Companies and Limited Liability Partnerships

Mary,Harold,Harvey,and William form an LLC by contributing $20,000,$50,000,$55,000,and $150,000 respectively.The LLC is designated to be member-managed.When a decision regarding the LLC's business is put to vote,Mary,Harvey,and Harold vote "yes" and William votes "no." Which of the following is true in this context?

The existence of an LLC begins when the articles of organization are delivered to the office of the secretary of state.

A(n)________ refers to a document that evidences a member's ownership interest in an LLC.

An LLC is a ________ in the state in which it is organized.

Which of the following is true of an LLC?

________ includes the duty not to usurp an LLC's opportunities,make secret profits,secretly deal with the LLC,secretly compete with the LLC,or represent any interests adverse to those of the LLC.

An LLC has the power to issue notes and bonds.

A member of an LLC is always entitled to remuneration for services performed for the LLC.

Which of the following is true of capital contribution to an LLC?

Philip and Deborah form an LLC.Philip contributes $50,000 capital,and Deborah contributes $75,000 capital.They do not have an agreement as to how profits are to be shared.If the LLC makes $100,000 profit in its first year,how will the profit be divided among the members?

A ________ of a manager-managed LLC owes no fiduciary duty of loyalty or care to the LLC or its other members and is treated equally to a shareholder in a corporation.

Chan,Yuvi,Betty,and Bob form a member-managed LLC that sells antique commodities online.Betty secretly starts a competing business and makes secret profits through the business.Which of the following is true of the given scenario?

Which of the following characteristics of an LLC is similar to that of limited partnerships and S corporations?

The disassociation of a member from a term LLC before the expiration of the specified term is wrongful.

Under the ULLCA,at least five members are required to form an LLC.

Which of the following is true of an LLC formation?

Which of the following best defines the term distributional interest?

A ________ is a person who intentionally or unintentionally causes injury or death to another person.

How does duty of care differ from duty of loyalty in an LLC?

In a member-managed LLC,each member has equal rights in the management of the business of the LLC,regardless of the size of his or her capital contribution.