Question 1

Limited liability company operating agreements can provide whether formal members' meetings will be held.

Accepted Answer

Limited liability company operating agreements can include provisions for formal members' meetings.

Question 2

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

Accepted Answer

Bee Hive Honey, LLC is a legal entity that is separate from its members. As such, it can sue and be sued in its own name, and its members are generally not liable for the company's debts and obligations beyond their investment in the company.

Question 3

Home Healthcare, LLC's owners are Inez and Jan. For purposes of entering into contracts, Home Healthcare is

Accepted Answer

Home Healthcare LLC is a separate legal entity from its owners, meaning it has its own rights and liabilities independent of its owners. This allows it to enter into contracts and conduct business in its own name.

Question 4

Jim is considering forms of business organization, including the limited liability company (LLC), for his business-Kettle Popt-Korn. Most states require that an LLC have ​

Accepted Answer

Most states require that an LLC have at least one member.

Question 5

In many states, an operating agreement is required for a limited liability company to exist.

Accepted Answer

While many states do not require an operating agreement for a limited liability company to exist, it is highly recommended that LLCs have an operating agreement in place to outline important details such as management structure, ownership percentages, distribution of profits and losses, and dissolution procedures.

Question 6

​Generally, if a member dissociates form a limited liability company (LLC), the other members cannot continue to carry on the LLC's business.

Accepted Answer

While the exact rules may vary depending on the specific state's LLC laws and the LLC's operating agreement, it is possible for the remaining members to continue the business after the dissociation of a member. This may require amending the operating agreement or filing paperwork with the state.

Question 7

When a limited liability company is dissolved, any member, including those who wrongfully dissociated, may participate in the winding up process.

Accepted Answer

The answer of When a limited liability company is dissolved,...

Question 8

A syndicate may be organized as a corporation or a partnership, or in some situations as no recognizable form of business organization.

Accepted Answer

A syndicate can be organized as a corporation or a partnership, or even as a separate legal entity with no recognizable form of business organization.

Question 9

Unless otherwise agreed, joint venturers have an equal voice in controlling a venture-related project.

Accepted Answer

This is known as the "equal sharing rule" and is a default provision in most joint venture agreements.

Question 10

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

Accepted Answer

Joint venturers typically have the authority to act as agents for the joint venture, which includes entering into contracts that bind the joint venture, unless otherwise specified in their agreement.

Question 11

A cooperative cannot be incorporated.

Accepted Answer

A cooperative can be incorporated. It is a legal entity that can own property, enter into contracts, sue and be sued, and conduct business operations like any other corporation.

Question 12

In a limited liability company, the management may consist of members or nonmembers, but not both.

Accepted Answer

In a limited liability company, the management structure can include both members and nonmembers. Members are typically owners of the company, while nonmembers may be hired to serve in management roles.

Question 13

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

Accepted Answer

This is because in a joint venture, the members only have authority to act in accordance with the specific terms of the joint venture agreement, while partners in a partnership have broader authority to act on behalf of the partnership.

Question 14

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

Accepted Answer

Members of an LLC have flexibility in creating their operating agreement, which can include provisions for voting rights and management structure.

Question 15

Jess and Keri are members of Livewire LLC, a limited liability company. In most situations, with respect to Livewire's debts, Jess and Keri are shielded from

Accepted Answer

As members of a limited liability company, Jess and Keri are generally shielded from personal liability for Livewire LLC's debts. This means that their personal assets cannot be seized to satisfy business debts. However, there are some situations where they could be held personally liable, such as if they personally guaranteed a loan or engaged in fraudulent or illegal activity.

Question 16

Beth and Carol want to form a limited liability company to manage their business, DoReMi Music. Their state has adopted the Uniform Limited Liability Company Act, which has been adopted in​

Accepted Answer

The answer of Beth and Carol want to form a...

Question 17

Normally, a member who dissociates from a limited liability company (LLC) has the right to force the LLC to dissolve.

Accepted Answer

Generally, a member who dissociates from an LLC does not have the right to force the LLC to dissolve. Some LLC operating agreements may include provisions allowing for dissolution upon the dissociation of a member, but this is not a default rule under most state LLC laws.

Question 18

Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.

Accepted Answer

A dissociated member of an LLC typically loses the right to participate in the management and decision-making of the LLC and does not have an inherent right to buy back their interest from the remaining members. The specific rights and obligations regarding dissociation are usually outlined in the LLC's operating agreement or the state's LLC statutes.

Question 19

A joint venture is taxed like a corporation.

Accepted Answer

A joint venture is typically taxed as a partnership, meaning the profits and losses are passed through to the individual partners and taxed at their personal income tax rates, unless it is structured as a corporation.

Question 20

Under most limited liability company statutes, if the members do not specify how profits will be split, they are divided in proportion to the members' capital investment.

Accepted Answer

The answer of Under most limited liability company statutes, if...

Quiz 38: Limited Liability Companies and Special Business Forms

Limited liability company operating agreements can provide whether formal members' meetings will be held.

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

Home Healthcare, LLC's owners are Inez and Jan. For purposes of entering into contracts, Home Healthcare is

Jim is considering forms of business organization, including the limited liability company (LLC) , for his business-Kettle Popt-Korn. Most states require that an LLC have

In many states, an operating agreement is required for a limited liability company to exist.

Generally, if a member dissociates form a limited liability company (LLC), the other members cannot continue to carry on the LLC's business.

When a limited liability company is dissolved, any member, including those who wrongfully dissociated, may participate in the winding up process.

A syndicate may be organized as a corporation or a partnership, or in some situations as no recognizable form of business organization.

Unless otherwise agreed, joint venturers have an equal voice in controlling a venture-related project.

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

A cooperative cannot be incorporated.

In a limited liability company, the management may consist of members or nonmembers, but not both.

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

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

Jess and Keri are members of Livewire LLC, a limited liability company. In most situations, with respect to Livewire's debts, Jess and Keri are shielded from

Beth and Carol want to form a limited liability company to manage their business, DoReMi Music. Their state has adopted the Uniform Limited Liability Company Act, which has been adopted in

Normally, a member who dissociates from a limited liability company (LLC) has the right to force the LLC to dissolve.

Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.

A joint venture is taxed like a corporation.

Under most limited liability company statutes, if the members do not specify how profits will be split, they are divided in proportion to the members' capital investment.

Quiz 38: Limited Liability Companies and Special Business Forms

Limited liability company operating agreements can provide whether formal members' meetings will be held.

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

Home Healthcare, LLC's owners are Inez and Jan. For purposes of entering into contracts, Home Healthcare is

Jim is considering forms of business organization, including the limited liability company (LLC) , for his business-Kettle Popt-Korn. Most states require that an LLC have ​

In many states, an operating agreement is required for a limited liability company to exist.

​Generally, if a member dissociates form a limited liability company (LLC), the other members cannot continue to carry on the LLC's business.

When a limited liability company is dissolved, any member, including those who wrongfully dissociated, may participate in the winding up process.

A syndicate may be organized as a corporation or a partnership, or in some situations as no recognizable form of business organization.

Unless otherwise agreed, joint venturers have an equal voice in controlling a venture-related project.

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

A cooperative cannot be incorporated.

In a limited liability company, the management may consist of members or nonmembers, but not both.

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

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

Jess and Keri are members of Livewire LLC, a limited liability company. In most situations, with respect to Livewire's debts, Jess and Keri are shielded from

Beth and Carol want to form a limited liability company to manage their business, DoReMi Music. Their state has adopted the Uniform Limited Liability Company Act, which has been adopted in​

Normally, a member who dissociates from a limited liability company (LLC) has the right to force the LLC to dissolve.

Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members.

A joint venture is taxed like a corporation.

Under most limited liability company statutes, if the members do not specify how profits will be split, they are divided in proportion to the members' capital investment.

Jim is considering forms of business organization, including the limited liability company (LLC) , for his business-Kettle Popt-Korn. Most states require that an LLC have

Generally, if a member dissociates form a limited liability company (LLC), the other members cannot continue to carry on the LLC's business.

Beth and Carol want to form a limited liability company to manage their business, DoReMi Music. Their state has adopted the Uniform Limited Liability Company Act, which has been adopted in