Exam 23: Sole Proprietorships, partnerships, and Limited Liability Companies

Qatar Global Investments is a foreign entity-a firm owned and operated by investors in a foreign country.With respect to a limited liability company in the United States,Qatar Global can

Mit-E Mart LLC was formed in New Jersey.Mit-E Mart's members are Odel,who is a citizen of New Jersey,and Pola,who is a citizen of New York.For federal diversity jurisdictional purposes,Mit-E is a citizen of

A sole proprietor may own and manage any type of business.

If there is no limited liability company (LLC) agreement covering a topic under dispute,the state LLC statute will govern the outcome.

Leigh wants to go into the business of construction contracting.Among the reasons that would probably convince Leigh to set up his business as a sole proprietorship would be

When a limited liability company is dissolved,any member who did not wrongfully dissociate may participate in the winding up process.

Doral,Esteban,and Fiona are general partners in Centreville Dentistry,a dental clinic.Their agreement states it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.Doral's assignment of his interest in the clinic to Hometown Lenders results in

Future members of a limited liability company (LLC) may enter into contracts on the entity's behalf before the LLC is formed.

StartUp Investors,LLC,is a limited liability company without a written operating agreement.Among the mem-bers,a dispute arises concerning the division of profits.Under most LLC statutes,the profits will be

Farm2Fork,LLC,is a limited liability company.Rather than dis-tribute its profits to its members,Energy wants to reinvest the profits in its business.For this reason,Energy may prefer to be taxed as

A limited liability company is a citizen of every state in which it does business.

A partner is a co-owner of partnership property.

Homer's Remodeling,LLC,is a limited liability company.Among the mem-bers,a dispute arises that their operating agreement does not cover.No statute applies.The dispute is governed by the principles of

Bo and Clancy decide to do business as Marketing & Promotion Services.To be a partnership,this association can result from an agreement that is

In many states,an operating agreement is not required for a limited liability company to exist.

Sweet Selections is a general partnership that sells candy,cards and flowers.Sweet Selections has ten partners.Jill and Amy each have a 25 percent interest in the partnership.All the other members have a 10 percent interest.To pass a management decision

Owen plans to open Owen's Pets Store,a pet sales and pet supplies outlet,and to hire Quimby and Ruth.Owen will invest only his own money.He does not ex-pect to make any profit for at least two years and to make almost no profit for the first three years,but he hopes to expand eventually.Which form of business organization would be most appropriate? What are the chief characteristics,advantages,and disadvantages of this form of busi-ness organization? If Owen wants to obtain additional capital to expand the business,but does not want to lose control of the firm,what is his best option?

The alter-ego doctrine can be applied to a limited liability company.

Coco is considering forms of business organization for her concessions business-Coco's Cupcakes.Most states require that a limited liability company have at least

Chocolate Sundry LLC's members and managers are Devlin,Effie,and Flavia.After Devlin's relationship to the firm ends,Effie and Flavia agree to discontinue the business.This is