Question 1205 out of 05 points Burt has gone to a commercial bank to negotiate

Question 1205 out of 05 points burt has gone to a

This preview shows page 4 - 6 out of 8 pages.

Question 120.5 out of 0.5 pointsBurt has gone to a commercial bank to negotiate a loan for the LLC in which he is a member. He tells the bank that he is authorized to act on behalf of and to bind the company. What is the best way for the bank to verify whether Burt does in fact have the authority he claims? Selected Answer:Check the articles of organization.Answers:Check the articles of organization.Call another member of the LLC for confirmation.Get him to sign a written statement.Nothing need be done because all LLC members have the right to bindthe company, as do general partners. Question 13 0.5 out of 0.5 points An LLC offers principals the same liability coverage as that of Question 140.5 out of 0.5 pointsIn Lieberman v. Wyoming.com, LLC, Lieberman dissociated from the LLC and demanded cash for his share of the company. The remaining members voted to continue the company, and the operating agreement discussed distribution in the case of dissolution but not simple dissociation. The court decided that
Image of page 4
Image of page 5
Image of page 6

You've reached the end of your free preview.

Want to read all 8 pages?

  • Fall '16
  • Corporation, Types of business entity, Limited Liability Company, Limited liability partnership

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture