Question
Business Law
36. Which of the following is recognized as a disadvantage to doing business as an LLC? Existing court decisions addressing LLC issues and formation are business decisions. enforceable contract a. i b. Individual members of the LLC can never bind the LLC in a valid and belstia chmeleal nn Compured to othr business ntities, hfe LC is axed more heavily by ther IRS An LLC requires the participation of several owners, which can sometimes complicate day-to-day business decisions. d. 37. All of the following are considered advantages of doing business as an LLC except: a. The LLC insulates its members from personal liabilities for the debts of b. Members of the LLC may lawfully avoid filing personal tax returns with c. The LLC can function much like a general partnership, while avoiding d. The LLC can provide its members voting rights that are proportionate to the business. the IRS many of the risks of a general partnership. the members' capital contributions. 38. Which of these will be included in a Limited Liability Company Operating Agreement a. Roles of members b. Distribution of profits and losses c. Voting rights d. All the above in the military. Knowing that he would of called to actigave his sister Peg authority to pay bills in siste his name, access his bank accounts, buy and selluthority te out of accounts, and incur expenses to maintain in his brok y bills n the country for a year or more, he es to maintain his house and car and boat. Peg is tock in his brokerage Jim a. Independent contractor b. Broker e. General agent d. Special agent 40. A principal whose identity is known to a principal a. Disclosed b. Undisclosed c. Partially disclosed d. Transparent
Explanation / Answer
36 a. Existing court decisions addressing LLC issues and formation are relatively undeveloped, which may lead to legal uncertainty when making business decisions.
37 b. Members of the LLC may lawfully avoid filing personal tax returns with the IRS.
38 d. all of the above
39 c general agent
40 a Disclosed, A principal whose identity is known to the third party at the time the agent makes a contract for the principal with the third party.
