Exam 24: Sole Proprietorships, partnerships, Ltd Liability

Vijay is a member of Watchit,LLC,a limited liability company.Vijay is li?able for Watchit's debts

Wild Horses Ranch is a family limited liability partnership (FLLP).In an FLLP,all of the partners must be

Energy Resources,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 choose to be taxed as

Joint ownership of property in and of itself creates a partnership.

The members,managers,and agents of a limited liability company are liable for its obligations by virtue of their status.

Omega Corporation and Precise Code,Inc. ,two software firms,wish to combine their research and development capabilities to make a special,limited edition computer game.The most appropriate legal en?tity for this project might be

A limited partner who participates in the management of the partner?ship may be personally liable to the firm's creditors.

A partnership for a definite term cannot be dissolved before the expiration of the term.

Daisy is considering forms of business organization for Daisy's Designs,an ar?chitectural firm.An advantage of a limited liability partnership is that partners can avoid personal liability for

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

Juli owns KuppaJava Kiosks,a sole proprietorship.Juli's liability is

Petra,Queenie,and Randell want to form Sales-to-Infinity,LLC (limited li?ability company).What should they provide in their operating agreement? With respect to the management of Sales-to-Infinity,what are the their options? If they fail to draft an operating agreement or do not include some important details,what determines these terms?

In a limited partnership,the liability of a general part?ner is the same as the liability of a limited partner.

CPA Accounting,LLC,is a limited liability company.If the law in CPA's state is like the law in most states,unless the members have agreed other?wise,participants in the firm's management will be considered to include

Fact Pattern 24-1 Brad is a general partner,and Carlos and Darlene are limited partners,in Eastside Physicians,a medical clinic and limited partnership. -Refer to Fact Pattern 24-1.Carlos's assignment of his interest in Eastside to Guaranty Credit Corporation results in

Sabin and Tyler agree while talking on the phone to form a partner?ship to open a coffee kiosk.Their partnership agreement is legally binding

Most states require a limited liability company to have at least two members.

Clu,Dolf,and Elton do business as Fertile Valley Farm,a partnership.Clu's relationship to the firm ends,but it continues to do business.Clu's ceasing to be involved with the farm is termed

QuikBooks LLC is a limited liability company.Like any other LLC,unless QuikBooks chooses otherwise,the firm will be taxed as

Dale and Eiger are partners in First-Place Athletic Supplies,which sells sports equipment.Dale manages the business.Unless the partnership agreement states otherwise,Dale is