1. A limited liability company does not need to procure insurance to protect its
ID: 2792592 • Letter: 1
Question
1. A limited liability company does not need to procure insurance to protect its assets since its members enjoy limited liability. True/False 2. An LLC must have an operating agreement. True/False 3. The winding up process for an LLC is similar to that of a partnership. True/False 4. Which of the following is a legal entity separate from its owners? a. Limited partnership b. LLP c. LLC d. All of the answers are correct. 5· The owners of a limited liability company are known as which of the following? a. Partners b. Members c. Stockholders d. Shareholders 6. LLC's are formed and operated in compliance with state law. True/False 7. The articles of organization for an LLC must include which of the following? a. The name and address of the registered agent. b. The name(s) of the business manager(s). c·The name of the business d. All of the above. 8. Which of the following is least likely to dissolve an LLC? a. Expiration of a certain time period specified in the operating agreement. b. Judicial determination of the equitability of liquidation. c. Dissociation by any member. d. Death of a member as outlined in the articles of organization. 9. The business name of an LLC must include the words "Limited Liability Company" or “LI C" True/False 0. An LLC with only one member can choose to be taxed as either a partnership or a corporation. rue/FalseExplanation / Answer
1. The answer is “false”. LLCs do need property insurance to cover the damage that may occur due to events like flood, fire etc.
2. The answer is “false”. No state in USA requires LLCs to create operating agreements except for few states like California, New York etc.
3. The answer is “false” because in case of LLCs there is a clear separation of business assets of the company from the personal assets of the owner.
4. The answer is “d” – all of the answers are correct. Limited partnership is a partnership with both general and limited partners. General partners manage the partnership and are personally liable for partnership obligations. Limited partners do not participate in the day-to-day management of the partnership and are not personally liable for partnership obligations. Limited liability partnerships are a hybrid form of partnership in which each partner can participate in the day-to-day management of the partnership, but without personal liability. Both these form of partnership have separate legal entity.
LLC or limited liability companies are limited partnerships without general partner. LLCs have a distinct legal entity of its own.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.