Chapter 38 Limited Liability Companies and Limited Partnerships

Chapter 38 Limited - Chapter 38 Limited Liability Companies and Limited Partnerships Multiple Choice Identify the letter of the choice that best

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Chapter 38 Limited Liability Companies and Limited Partnerships Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Beth and Carl want to form a limited liability company (LLC) to manage their seven Movie Time Video rental stores. LLC statutes have been adopted in a. all states. b. a majority of states. c. only foreign countries. d. only Wyoming. ____ 2. Computer Networks, LLC, is a limited liability company. Unless indicated otherwise on Computer Networks' federal tax form, the firm will be taxed as a. a corporation. b. a partnership. c. a sole proprietorship. d. none of the above. ____ 3. Bill is considering forms of business organization for his Web-site consulting firm. Most states require that a limited liability company have a. no members. b. one member. c. two members. d. three members, including at least one general partner. ____ 4. Cathy is considering forms of business organization for her advertising-art firm. Like most states, Cathy's state requires that to form a limited liability company, she must file, with a central state agency, articles of a. certification. b. incorporation. c. organization. d. none of the above. ____ 5. Interstate Trucking, LLC, is a limited liability company. Jack, an Interstate driver, is in an accident in New Jersey with Owen, a citizen of New York. Owen files a suit against Interstate in a federal district court. For purposes of federal court jurisdiction, the citizenship of Interstate is the same as the citizenship of
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b. Jack. c. the state of Interstate Trucking's formation. d. none of the above. ____ 6. Sally is considering forms of business organization for her construction-equipment business. For purposes of owning property and being a party to litigation, forms that are legal entities separate from their owners include a. corporations only. b. limited liability companies only. c. corporations and limited liability companies. d. none of the above. ____ 7. Jill is considering forms of business organization for her general-merchandise wholesale business. One advantage of the limited liability company form, with respect to tax options, is its a. flexibility. b. lack of options. c. rigidity. d. none of the above. ____ 8. International Investments, LLC, is a limited liability company. Rather than distribute its profits to its members, International wants to reinvest the profits in its business. For this reason, International may prefer to be taxed as a. a corporation. b. a partnership. c. a sole proprietorship. d. none of the above. ____ 9. General Construction, LLC, is a limited liability company. Among the members, a dispute arises that their operating agreement does not cover. The dispute is governed by a. the applicable state LLC statute.
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This note was uploaded on 03/26/2012 for the course ECON 101 taught by Professor Mr.delacruz during the Spring '11 term at Assoc. of Chartered Certified Accountants.

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Chapter 38 Limited - Chapter 38 Limited Liability Companies and Limited Partnerships Multiple Choice Identify the letter of the choice that best

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