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AACSB: Reflective ThinkingBlooms: EvaluateDifficulty: HardLearning Objective: 14-08 Recognize the utility of other business arrangements including franchise relationships and business trusts.Melvin - Chapter 14 #54Topic: The FTC and Franchises
55.(p. 363)An LLC: A. offers principals the same liability coverage as principals in corporations with taxation at the business entity level.B.offers principals the same liability coverage as principals in corporations with pass through taxation.C. offers principals the same liability coverage as general partners in a partnership with taxation at the business entity level.D. offers principals the same liability coverage as limited partners in a partnership with pass through taxation.The LLC provides liability protection similar to that offered at a corporate entity level with pass through taxation to the principals.AACSB: Reflective ThinkingBlooms: ApplyDifficulty: HardLearning Objective: 14-01 Identify the sources and level of laws that govern LLP and LLC entities.Learning Objective: 14-05 A rticulate the legal protections from personal liability afforded to the principals in an LLC and LLP.Melvin - Chapter 14 #55Topic: Overview of LLCs and LLPs56.(p. 363; 366)LLCs share characteristics in common with each of the following except: AACSB: Reflective ThinkingBlooms: UnderstandDifficulty: MediumLearning Objective: 14-02 Explain the function of an operating agreement and the fundamental structure of an LLC.Melvin - Chapter 14 #56Topic: Limited Liability Companies (LLCs)
57.(p. 367)Several people have decided to go into business as an LLC. To cover all contingencies, specifying what will constitute an act of dissociation and specifying the procedures upon dissolution would be included in the: AACSB: AnalyticBlooms: UnderstandDifficulty: MediumLearning Objective: 14-02 Explain the function of an operating agreement and the fundamental structure of an LLC.Learning Objective: 14-04 D etermine the rights of principals upon withdrawal from an LLC.Melvin - Chapter 14 #57Topic: Dissolution of LLCs and Dissociation of Members