Exam 38: Other Organizational Forms for Small Businesses

Arnie is a member of Bowling & Billiards, LLC, a limited liability company. Arnie can participate in the firm's management

A limited liability company must be managed by nonmembers.

Limited liability companies are entities apart from their owners.

Gabriella is a beneficiary of a business trust. As a beneficiary, she is required to

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

The law considers all new, single-owner businesses to be sole proprietorships unless the owner affirmatively adopts some other form.

Nichelle, Owen, and Porter organize a nonprofit business-Quality Markets, Inc.-to buy groceries from wholesalers and sell them to consumers who buy a membership in Quality Markets. 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 Quality Markets? Is it significant that Quality Markets is incorporated?

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

A joint stock company is generally treated as a partnership.

Members of limited liability companies are shielded from personal liability in many situations.

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

As the trustee of a business trust, Bertoldi is required to

The alter-ego theory can be applied to a corporation, but not a limited liability company.

Dairy Products, Inc., and Eden Farms Corporation form a joint venture to make and test-market Frosty Ice Cream. A joint ven?ture is usually formed for

Location! Realty LLC is a limited liability company. Like other LLCs, for federal jurisdictional purposes, Location! Realty is most likely a citizen of

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

Business Enterprise Company agrees to sell a commercial office building and parking garage to City Investments, Inc., which assigns the rights to the realty to Downtown Properties, LLC. Downtown Properties does not yet exist, but once it is created and comes into existence, the contract on novation will most likely be

Medical Professionals Supply Source is an unincorporated cooperative. Unincorporated cooperatives are often treated like

Kalin, Liza, and other consumers form MuniMart Cooperative. This form of business organization makes it possible for these individuals to

Most states apply to a limited liability company (LLC) formed in another state the law of the state where the LLC was formed.