Question 1

GMO Grain Corporation and Hybrid Yields, Inc., form a joint stock company. The ownership of a joint stock company is represented by

Accepted Answer

A)   ​partnership certificates.
B)   ​shares of stock.
C)   ​title documents.
D)   ​trust certificates.E) A) and B)
F) A) and C)

Question 2

Leon, Michael, Nolan, and O'Neill join together to buy a professional basketball franchise. Their selected form of business organization is an investment group, which is also known as

Accepted Answer

A)   ​a business trust.
B)   ​a joint stock company.
C)   ​a joint venture.
D)   ​a syndicate.E) A) and D)
F) All of the above

Question 3

Dana is a member of Earthground Coffee, LLC, a limited liability company. Dana is liable for Earthground's debts

Accepted Answer

A)   ​in proportion to the total number of members.
B)   ​to the extent of her investment in the firm.
C)   ​in proportion to her profit derived from the firm.
D)   ​to the full extent.E) A) and D)
F) A) and C)

Question 4

Western Rodeo LLC is a limited liability company (LLC) . Like other LLCs, for federal jurisdictional purposes, Western Rodeo is most likely a citizen of

Accepted Answer

A)   ​all states in the United States.
B)   ​every state of which its members are citizens.
C)   ​any state in which it does business.
D)   ​no state-an LLC is not a "citizen."E) A) and B)
F) A) and C)

Question 5

Limited liability companies are entities apart from their owners.

Accepted Answer

A) True 
 B)False

Question 6

Orly's Adventure Travel and Paquito's Wild River Tours form a joint venture. Orly can participate in the venture's management to

Accepted Answer

A)   ​the extent that she assumes liability for the venture's debts.
B)   ​the extent of her investment in the venture.
C)   ​any extent.
D)   ​no extent.E) C) and D)
F) A) and B)

Question 7

Rural Development Company and Suburban Real Estate Corporation form a joint stock company. A joint stock company can be formed for, at the most,

Accepted Answer

A)   ​an implied duration of not more than six months.
B)   ​a perpetual existence.
C)   ​a single activity or transaction.
D)   ​an express duration of not more than one year.E) None of the above
F) A) and D)

Question 8

To form a limited liability company, articles of organization must be filed with the federal Small Business Administration.

Accepted Answer

A) True 
 B)False

Question 9

Every limited liability company is a citizen of every state.

Accepted Answer

A) True 
 B)False

Question 10

Rogue Art Gallery and Sequoia Exhibitions form a joint venture. When a dispute arises, Rogue files a suit against Sequoia. The court is most likely to apply the same principles to this joint venture as it applies to

Accepted Answer

A)   ​business trusts.
B)   ​limited liability companies.
C)   ​corporations.
D)   ​partnerships.E) A) and B)
F) A) and C)

Question 11

Start-Ups, LLC, is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be

Accepted Answer

A)   ​distributed according to members' proportionate ownership in the firm.
B)   ​divided equally among the members.
C)   ​forfeited to the state.
D)   ​reinvested in the business until the dispute is resolved.E) All of the above
F) B) and D)

Question 12

As the beneficiary of a business trust, Bob'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.E) B) and D)
F) B) and C)

Exam 4: Limited Liability Companies and Special Business Forms

Limited liability companies are entities apart from their owners.

Correct Answer
verified

Western Rodeo LLC is a limited liability company (LLC) . Like other LLCs, for federal jurisdictional purposes, Western Rodeo is most likely a citizen of

Correct Answer
verified

Orly's Adventure Travel and Paquito's Wild River Tours form a joint venture. Orly can participate in the venture's management to

Correct Answer
verified

Rural Development Company and Suburban Real Estate Corporation form a joint stock company. A joint stock company can be formed for, at the most,

Correct Answer
verified

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

Correct Answer
verified

Every limited liability company is a citizen of every state.

Correct Answer
verified

Start-Ups, LLC, is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be

Correct Answer
verified

Rogue Art Gallery and Sequoia Exhibitions form a joint venture. When a dispute arises, Rogue files a suit against Sequoia. The court is most likely to apply the same principles to this joint venture as it applies to

Correct Answer
verified

GMO Grain Corporation and Hybrid Yields, Inc., form a joint stock company. The ownership of a joint stock company is represented by

Correct Answer
verified

Dana is a member of Earthground Coffee, LLC, a limited liability company. Dana is liable for Earthground's debts

Correct Answer
verified

To form a limited liability company, articles of organization must be filed with the federal Small Business Administration.

Correct Answer
verified

Leon, Michael, Nolan, and O'Neill join together to buy a professional basketball franchise. Their selected form of business organization is an investment group, which is also known as

Correct Answer
verified

Exam 4: Limited Liability Companies and Special Business Forms

Limited liability companies are entities apart from their owners.

Correct AnswerverifiedShow Answer

Western Rodeo LLC is a limited liability company (LLC) . Like other LLCs, for federal jurisdictional purposes, Western Rodeo is most likely a citizen of

Correct AnswerverifiedShow Answer

Orly's Adventure Travel and Paquito's Wild River Tours form a joint venture. Orly can participate in the venture's management to

Correct AnswerverifiedShow Answer

Rural Development Company and Suburban Real Estate Corporation form a joint stock company. A joint stock company can be formed for, at the most,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Every limited liability company is a citizen of every state.

Correct AnswerverifiedShow Answer

Start-Ups, LLC, is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be

Correct AnswerverifiedShow Answer

Rogue Art Gallery and Sequoia Exhibitions form a joint venture. When a dispute arises, Rogue files a suit against Sequoia. The court is most likely to apply the same principles to this joint venture as it applies to

Correct AnswerverifiedShow Answer

GMO Grain Corporation and Hybrid Yields, Inc., form a joint stock company. The ownership of a joint stock company is represented by

Correct AnswerverifiedShow Answer

Dana is a member of Earthground Coffee, LLC, a limited liability company. Dana is liable for Earthground's debts

Correct AnswerverifiedShow Answer

To form a limited liability company, articles of organization must be filed with the federal Small Business Administration.

Correct AnswerverifiedShow Answer

Leon, Michael, Nolan, and O'Neill join together to buy a professional basketball franchise. Their selected form of business organization is an investment group, which is also known as

Correct AnswerverifiedShow Answer

Correct Answer
verified

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