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39. Both managing members and controlling members owe a fiduciary duty to other members. True False40. Every state in the United States recognizes the existence of LLCs. 41. LLCs were originally created by the: 42. Formation of an LLC requires the filing of:
43. The origins of LLPs were rooted in protection of: A. private service firm partnerships.B. private service firm sole proprietorships.C. professional service firm partnerships.D. professional service firm sole proprietorships.44. Though they may elect a different structure, for tax purposes LLCs are typically treated as: 45. The first LLP legislation was enacted in: 46. The ability to flow through to the investors the tax deductions and losses that are typically generated by an emerging company or a company with significant up-front debtis an advantage of a: 47. Carlos is a member of an LLC along with three others. After one year, despite their best efforts, the business closes and the bank that extended them a loan sues for repayment. The bank may: A. sue Carlos for only 25 percent of its loss under rules pertaining to LLCs.B. sue Carlos for the entire amount because Carlos is jointly and severally liable for the loss.C. sue Carlos only if he is a managing member.D. sue the LLC but may not sue Carlos.
48. LLPs were created to: 49. Typically, day-to-day decision making in an LLC is performed by: 50. In 1997, the IRS made LLCs: