Question

Question 1

A limited liability company offers the limited liability of a corporation.

True

False

Question 2

A limited liability company must be formed in compliance with federal law.

True

False

Question 3

Most states do not permit one-member limited liability companies.

True

False

Question 4

A limited liability company is a citizen of every state of which its members are citizens.

True

False

Question 5

For federal income tax purposes, a limited liability company can choose to be taxed like a corporation.

True

False

Question 6

A limited liability company must have an operating agreement.

True

False

Question 7

In a limited liability company, members cannot participate in its management.

True

False

Question 8

In a limited partnership, the liability of a general partner is unlimited.

True

False

Question 9

In a limited partnership, the liability of a limited partner is limited to the amount of capital he or she has invested in the partnership.

True

False

Question 10

In a limited liability limited partnership, the liability of a limited partner is limited to the amount of capital he or she has invested in the partnership.

True

False

Answer 1

1. TRUE

A limited liability company as the name indicates offers the limited liability of a corporation. partners and their liability is limited.

2. False

A limited liability company must be formed in compliance with state law not in federal law.

3. False

majority of the states permit one member limited liability companies, some state require at least two members.

4. TRUE

under jurisdictional requirements a limited liability company is a citizen of every state of which its members are citizens.

5. TRUE

LLC wishes to be taxed as a corporation unless it says, the internal revenue services automatically taxes its as a partnership.

6.False

it does not operating agreement to run the business. in many states , an operating agreement is not required for an limited liability companies to exist

7. False

they can participate in management activities. The firm can be either a " member - managed" LLC or a " manager-manged" LLC. in a member managed LLC, all of the members participate in management.

8. True

in a limited partnership, general partner has unlimited liability. other member have limited liability.

9. True

In a limited partnership, the liability of a limited partner is limited to the amount of capital he or she has invested