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Exam 38: Limited Liability Companies and Special Business Forms

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Question 31

Multiple Choice

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

A) ​an aggregate of its members.
B) ​a non-entity
C) ​a legal entity apart from its members.
D) ​a non-participating third party.

E) B) and C)
F) A) and C)

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Question 32

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

A) True
B) False

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Question 33

Multiple Choice

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Greenway Corporation and Happy Trails, Inc., combine their efforts to build a network of biking and hiking trails along an unused railroad spur. Their form of business organization is

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​

Custom Auto, LLC, is a limited liability company. Its members include Dennis and Emma. Like other LLCs with more than one member, unless indicated otherwise, the firm will automatically be taxed as

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

Business Media, a partnership, publishes periodicals, including Cycle Review. DangerZoners, also a partnership, publishes Extreem Sportz. Business Media and DangerZoners agree to pool their resources in a one-time deal to print and market a book, Future Runs. In contracting with Geo Cache, Inc., for supplies to print the book, Business Media commits fraud. In contracting with Host Articles Agency for materials to use in Extreem Sportz, DangerZoners commits fraud. Geo Cache and Host Articles file suits against Business Media and DangerZoners. What type of business organization has Business Media and DangerZoners formed? To whom, if anyone, is Business Media liable? To whom, if anyone, is DangerZoners liable?

Foreign investors cannot participate in a limited liability company.

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

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

Members of a limited liability company (LLC) can stipulate in their operating agreement how managers will be chosen or removed.

If a dispute arises and the applicable limited liability company statute does not cover the issue, a court will most likely dismiss the case.

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

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

A cooperative cannot be incorporated.

Limited liability companies cannot enter into contracts or hold title to property.

Dreem Land Corporation and Earthbound Investments Company transfer their property to Financial Managers, Inc., which manages the property and distributes the profits to Dreem and Earthbound. This form of a business organization is

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

Trans-Pacific Company and USA Export, 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 organization is

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