Question 1

The participants in a joint venture have more implied and apparent authority than the partners in a partnership.

Accepted Answer

A) True 
 B)False  False

Question 2

Bee Hive Honey,LLC's members include Chad.For purposes of suing and being sued,Bee Hive Honey is

Accepted Answer

A) an aggregate of Chad and the other members. 
B) a natural person in the members' "family." 
C) a legal entity apart from the owners. 
D) a non-participating third party. 
A) an aggregate of Chad and the other members. 
B) a natural person in the members' "family." 
C) a legal entity apart from the owners. 
D) a non-participating third party. C

Question 3

A limited liability company cannot be taxed as a partnership.

Accepted Answer

A) True 
 B)False  False

Question 4

A limited liability company is required to have an operating agreement.

Accepted Answer

A) True 
 B)False

Question 5

A joint venture is taxed like a partnership.

Accepted Answer

A) True 
 B)False

Question 6

Drew is a beneficiary of a business trust.As a beneficiary,Drew is required to

Accepted Answer

A) distribute the profits and manage the property. 
B) distribute the profits only. 
C) manage the property only. 
D) neither distribute the profits nor manage the property. 
A) distribute the profits and manage the property. 
B) distribute the profits only. 
C) manage the property only. 
D) neither distribute the profits nor manage the property.

Question 7

A syndicate may be organized as a corporation but not as a partnership.

Accepted Answer

A) True 
 B)False

Question 8

In a limited liability company,members do not have to participate in its management.

Accepted Answer

A) True 
 B)False

Question 9

The dissociation of a member of a limited liability company in violation of the operating agreement is legally wrongful.

Accepted Answer

A) True 
 B)False

Question 10

Loni,Michel,and Nita are investors in Oceanic Exploration,a business trust.A business trust is managed by its

Accepted Answer

A) directors and officers. 
B) general partners. 
C) managing members. 
D) trustees. 
A) directors and officers. 
B) general partners. 
C) managing members. 
D) trustees.

Question 11

Big Valu Grocery Stores is an unincorporated cooperative.Big Valu and other unincorporated cooperatives are generally treated like

Accepted Answer

A) business trusts. 
B) corporations. 
C) joint stock companies. 
D) partnerships. 
A) business trusts. 
B) corporations. 
C) joint stock companies. 
D) partnerships.

Question 12

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

Accepted Answer

A) limited to his capital investment in the trust. 
B) limited to his personal assets. 
C) nothing. 
D) unlimited. 
A) limited to his capital investment in the trust. 
B) limited to his personal assets. 
C) nothing. 
D) unlimited.

Question 13

Consumers in Delta 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. 
A) a business trust. 
B) a cooperative. 
C) a corporation. 
D) a joint stock company.

Question 14

Elmo is the owner and manager of a business trust.Under the terms of a business trust,Elmo is required to

Accepted Answer

A) distribute the profits and manage the property. 
B) distribute the profits only. 
C) manage the property only. 
D) neither distribute the profits nor manage the property. 
A) distribute the profits and manage the property. 
B) distribute the profits only. 
C) manage the property only. 
D) neither distribute the profits nor manage the property.

Question 15

Jade,Kelly,and Lila organize a nonprofit business-JKL Markets,Inc.-to buy groceries from wholesalers and sell them to consumers who buy a membership in JKL.Because the firm is a nonprofit entity,it is able to sell the groceries for less than a commercial grocer could.What form of business organization is JKL Markets Is it significant that JKL is incorporated

Accepted Answer

JKL Markets is a cooperative.A cooperati

Question 16

Jay is a member of Kappa,LLC,a limited liability company.Jay is liable for Kappa's debts

Accepted Answer

A) in proportion to the total number of members. 
B) to the extent of his capital contribution. 
C) to the extent that the other members do not pay the debts. 
D) to the full extent. 
A) in proportion to the total number of members. 
B) to the extent of his capital contribution. 
C) to the extent that the other members do not pay the debts. 
D) to the full extent.

Question 17

High Pointe LLC's members include Irvin.For purposes of holding title to property,High Pointe is

Accepted Answer

A) an aggregate of Irvin and the other members. 
B) a natural person in the members' "family." 
C) a legal entity apart from the owners. 
D) a non-participating third party. 
A) an aggregate of Irvin and the other members. 
B) a natural person in the members' "family." 
C) a legal entity apart from the owners. 
D) a non-participating third party.

Question 18

The owners of an incorporated cooperative are personally liable for its obligations.

Accepted Answer

A) True 
 B)False

Question 19

Exotic Stuff Company and First Pier,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 business organization is

Accepted Answer

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

Question 20

In a limited liability company,members cannot participate in its management.

Accepted Answer

A) True 
 B)False

Exam 33: Limited Liability Companies Special Business Forms

The participants in a joint venture have more implied and apparent authority than the partners in a partnership.

Bee Hive Honey,LLC's members include Chad.For purposes of suing and being sued,Bee Hive Honey is

A limited liability company cannot be taxed as a partnership.

A limited liability company is required to have an operating agreement.

A joint venture is taxed like a partnership.

Drew is a beneficiary of a business trust.As a beneficiary,Drew is required to

A syndicate may be organized as a corporation but not as a partnership.

In a limited liability company,members do not have to participate in its management.

The dissociation of a member of a limited liability company in violation of the operating agreement is legally wrongful.

Loni,Michel,and Nita are investors in Oceanic Exploration,a business trust.A business trust is managed by its

Big Valu Grocery Stores is an unincorporated cooperative.Big Valu and other unincorporated cooperatives are generally treated like

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

Consumers in Delta City form a business organization to provide,without profit,an economic service to its members.This is

Elmo is the owner and manager of a business trust.Under the terms of a business trust,Elmo is required to

Jay is a member of Kappa,LLC,a limited liability company.Jay is liable for Kappa's debts

High Pointe LLC's members include Irvin.For purposes of holding title to property,High Pointe is

The owners of an incorporated cooperative are personally liable for its obligations.

Exotic Stuff Company and First Pier,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 business organization is

In a limited liability company,members cannot participate in its management.

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