cheeseman_buslaw7_tif_39

cheeseman_buslaw7_tif_39 - 39 LIMITEDLIABILITYCOMPANIES...

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1) The LLC is a separate legal entity distinct from its members. Answer: TRUE Diff: 1 Topic: Limited Liability Company (LLC) 2) The Uniform Limited Liability Company Act only covers problems that arise in the formation of a limited liability company. Answer: FALSE Diff: 1 Topic: The Uniform Limited Liability Company Act 3) Limited liability companies are authorized by federal law. Answer: FALSE Diff: 1 Topic: The Uniform Limited Liability Company Act 4) An LLC is taxed at the entity level. Answer: FALSE Diff: 1 Topic: Taxation of LLCs 5) Most LLCs elect to be taxed as a corporation. Answer: FALSE Diff: 2 Topic: Taxation of LLCs 6) An LLC may own and transfer personal property. Answer: TRUE Diff: 1 Topic: Powers of an LLC 86 LIMITED LIABILITY COMPANIES  AND LIMITED LIABILITY  PARTNERSHIPS 39
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7) The owners of LLCs are called shareholders. Answer: FALSE Diff: 1 Topic: Member's Limited Liability 8) A member personally guaranteeing any obligation of an LLC will experience a personal loss only up to his or her capital contribution. Answer: TRUE Diff: 2 Topic: Member's Limited Liability 9) An LLC is liable for any loss or injury caused to anyone as a result of a wrongful act or omission by a member or manager, but not by an agent or an employee of the LLC who commits the wrongful act while acting within the ordinary course of business of the LLC. Answer: FALSE Diff: 2 Topic: Liability of an LLC 10) Managers of LLCs are personally liable for the debts, obligations, and liabilities of the LLC they manage. Answer: FALSE Diff: 2 Topic: Liability of Managers 11) If a member or a manager of an LLC negligently causes injury or death to another person, he or she is personally liable to the injured person or the heirs of a deceased person. Answer: TRUE Diff: 1 Topic: Liability of the Tortfeasors 12) An LLC can generally be operated for any lawful purpose except certain regulated industries and certain professions. Answer: TRUE Diff: 1 Topic: Formation of an LLC 13) An LLC can be formed in the state even though it can conduct business in all other states. Answer: TRUE Diff: 1 Topic: Formation of an LLC 87
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14) The name of an LLC must indicate in some fashion that it is an LLC. Answer: TRUE Diff: 1 Topic: Formation of an LLC 15) An LLC may not be organized by only one member such as a sole proprietor. Answer: FALSE Diff: 2 Topic: Formation of an LLC 16) An LLC is an at-will LLC unless it is designated as a term LLC. Answer: TRUE Diff: 1 Topic: Formation of an LLC 17) A member's capital contribution to an LLC may be in the form of a patent. Answer: TRUE Diff: 2 Topic: Formation of an LLC 18) A general partnership may not convert to an LLC. Answer: FALSE Diff: 1 Topic: Formation of an LLC 19) Members may draft an agreement whereby the profits of an LLC are not to be shared equally. Answer:
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This note was uploaded on 12/13/2011 for the course LAW LAW taught by Professor Ricks during the Spring '09 term at Rutgers.

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cheeseman_buslaw7_tif_39 - 39 LIMITEDLIABILITYCOMPANIES...

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