Exam 32: Limited Liability Companies and Special Business Forms

Dana is a member of Earthground Coffee,LLC,a limited liability company. Dana is liable for Earthground's debts

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

Lauren,Marcella,and Norell form a syndicate to buy a professional soccer franchise. This syndicate could be set up as

Most limited liability company statutes provide that if the members have not specified how the profits will be divided,they will be divided in proportion to the members' capital investment.

Most courts apply the same principles to joint ventures as they apply to partnerships.

Dreem Land Corporation and Earthbound Investments Company transfer their property to Financial Managers,Inc.,which manages the property and distributes the profits to Dreem and Earthbound. This form of a business organization is

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

As the beneficiary of a business trust,Kevin's liability for trust debts and obligations is

If a dispute arises and the applicable limited liability company statute does not cover the issue,a court will most likely dismiss the case.

For federal income tax purposes,one-member limited liability companies are not taxed.

A limited liability company is a citizen of every state of which its members are citizens.

Joint venturers do not have the authority as agents to enter into contracts for the business that will bind the joint venture.

Members of a limited liability company can stipulate in their operating agreement how voting rights will be apportioned.

Transworld Import Company and USA Export,Inc.,form a business organization to engage in importing and exporting. Its property is held in the names of the members and its shareholders have personal liability. This organization is

Outreach Security & Rescue,LLC,is a limited liability company. Unless the members have agreed otherwise,participants in the firm's management will be considered to include

The members of a joint venture have less implied and apparent authority than the partners in a partnership.

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

A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.

Typically,the articles of organization of a limited liability company (LLC)include information on how the LLC will be managed.

Rural Residential Development Company and Suburban Real Estate Corporation form a joint stock company. A joint stock company can be formed for,at the most,