BUL 3310 Exam 4- Bailey- Questions &
Answers
In a manager-managed LLC ___________.
A. No one member of the LLC has authority to make business decisions on behalf of the LLC.??
B. An individual or small group has the authority to control and make decisions for the LLC.
C. All members of the LLC participate equally in business decisions.
D. The authority of the members of the LLC to make decisions is directly proportionate to the
amount their capital contribution. Correct Ans-B. An individual or small group has the
authority to control and make decisions for the LLC.
Which of the following usually provides an investor the least protection from personal liability
for the debts of the business?
A. General Partnership
B. Limited Partnership
C. LLC
D. Corporation Correct Ans-A. General partnership
Compared to other business entities, a general partnership requires filing complex documentation
with the secretary of state's office before it is authorized to do business.
true/false? Correct Ans-false
,Jo and Anna, who are mother and daughter, are co-owners of Joanna's Frocks. When the bank
loaned money to the business, Jo and Anna agreed to be sureties on the loan. Under the loan
agreement, Anna will be liable only if Jo defaults on her obligation as a surety. Anna is a
__________ on the loan.
A. General guarantor
B. Special guarantor
C. Co-surety
D. Sub-surety Correct Ans-D. subsurety
In a manager-membered LLC, an individual or small group has the authority to control and make
decisions for the LLC.
true/false? Correct Ans-true
Absent an agreement otherwise, the members of an LLC have a statutory right to
A. approve a merger
B. dissolve the LLC
C. inspect the books and records of the LLC
D. all of the above are statutory rights Correct Ans-D. all of the above
A lien for the value of material and labor expended in the construction of buildings and other
improvements is a _________.
,a. Artisan's lien.
b. Mechanic's lien.
c. Suretyship.
d. Right of redemption Correct Ans-B. mechanics lien
Jason has filed suit against Luke claiming $50,000 in damages. While the claim is being
litigated, Jason can ask the court for a writ to seize property belonging to Luke which could be
used to satisfy a judgment. The seizure prevents Luke from selling or otherwise disposing of the
property during the proceedings. The writ Jason will ask for is a writ of________________.
A. Attachment
B. Attainder
C. Execution wrong
D. Garnishment wrong Correct Ans-A. attachment
Limited Liability Companies are one of the oldest forms of business organization
true/false? Correct Ans-false
All of the following could be accurate statements about a general partnership, except:
A. Partnership liabilities in a general partnership are limited to the amount of capital
contribution.
B. Partners can share in management of the partnership.
, C. Partners can share partnership profits.
D. The general partnership allows for quick, easy and immediate control. Correct Ans-A.
Partnership liabilities in a general partnership are limited to the amount of capital contribution.
Contracts of suretyship are legally indistinguishable from contracts of indemnity. Correct
Ans-true
An LLC must have at least two members that participate in management in order to lawfully do
business. Correct Ans-false
A disadvantage of the Limited Liability Company is that profits are taxed both as income to the
corporation and as dividends to the members.
true/false? Correct Ans-false
One recognized advantage to a general partnership is that it allows partners to share in
management and profits of the partnership. Correct Ans-true
The manager of a manager-managed Limited Liability Company may be a non-member.
Correct Ans-true
In a Limited Liability Company, the unanimous consent of the members is required to hire a new
employee. Correct Ans-false
Answers
In a manager-managed LLC ___________.
A. No one member of the LLC has authority to make business decisions on behalf of the LLC.??
B. An individual or small group has the authority to control and make decisions for the LLC.
C. All members of the LLC participate equally in business decisions.
D. The authority of the members of the LLC to make decisions is directly proportionate to the
amount their capital contribution. Correct Ans-B. An individual or small group has the
authority to control and make decisions for the LLC.
Which of the following usually provides an investor the least protection from personal liability
for the debts of the business?
A. General Partnership
B. Limited Partnership
C. LLC
D. Corporation Correct Ans-A. General partnership
Compared to other business entities, a general partnership requires filing complex documentation
with the secretary of state's office before it is authorized to do business.
true/false? Correct Ans-false
,Jo and Anna, who are mother and daughter, are co-owners of Joanna's Frocks. When the bank
loaned money to the business, Jo and Anna agreed to be sureties on the loan. Under the loan
agreement, Anna will be liable only if Jo defaults on her obligation as a surety. Anna is a
__________ on the loan.
A. General guarantor
B. Special guarantor
C. Co-surety
D. Sub-surety Correct Ans-D. subsurety
In a manager-membered LLC, an individual or small group has the authority to control and make
decisions for the LLC.
true/false? Correct Ans-true
Absent an agreement otherwise, the members of an LLC have a statutory right to
A. approve a merger
B. dissolve the LLC
C. inspect the books and records of the LLC
D. all of the above are statutory rights Correct Ans-D. all of the above
A lien for the value of material and labor expended in the construction of buildings and other
improvements is a _________.
,a. Artisan's lien.
b. Mechanic's lien.
c. Suretyship.
d. Right of redemption Correct Ans-B. mechanics lien
Jason has filed suit against Luke claiming $50,000 in damages. While the claim is being
litigated, Jason can ask the court for a writ to seize property belonging to Luke which could be
used to satisfy a judgment. The seizure prevents Luke from selling or otherwise disposing of the
property during the proceedings. The writ Jason will ask for is a writ of________________.
A. Attachment
B. Attainder
C. Execution wrong
D. Garnishment wrong Correct Ans-A. attachment
Limited Liability Companies are one of the oldest forms of business organization
true/false? Correct Ans-false
All of the following could be accurate statements about a general partnership, except:
A. Partnership liabilities in a general partnership are limited to the amount of capital
contribution.
B. Partners can share in management of the partnership.
, C. Partners can share partnership profits.
D. The general partnership allows for quick, easy and immediate control. Correct Ans-A.
Partnership liabilities in a general partnership are limited to the amount of capital contribution.
Contracts of suretyship are legally indistinguishable from contracts of indemnity. Correct
Ans-true
An LLC must have at least two members that participate in management in order to lawfully do
business. Correct Ans-false
A disadvantage of the Limited Liability Company is that profits are taxed both as income to the
corporation and as dividends to the members.
true/false? Correct Ans-false
One recognized advantage to a general partnership is that it allows partners to share in
management and profits of the partnership. Correct Ans-true
The manager of a manager-managed Limited Liability Company may be a non-member.
Correct Ans-true
In a Limited Liability Company, the unanimous consent of the members is required to hire a new
employee. Correct Ans-false
