BUL 3310 BAILEY EXAM 4 FSU- TEST
QUESTIONS & ANSWERS
A creditor must exhaust his or her judicial remedies against the principal before seeking to
recover from the surety.
True
False Correct Ans-False
Both contractors and subcontractors are entitled to a mechanic's lien against the owner for
nonpayment of their accounts.
True
False Correct Ans-True
Contractors have a longer period in which to file mechanic's liens that subcontractors or
suppliers have.
True
False Correct Ans-True
,Absent an agreement otherwise, a Limited Liability Company's operating agreement can only be
amended with the unanimous consent of the members.
True
False Correct Ans-True
Which of the following statements about the operation of a member-managed LLC is false?
Articles of organization must be filed with the state as part of the application process.
The application must state that it is to be a member-managed LLC.
Only the managing members have access to the books and records of the LLC
Any member of the LLC may bind the LLC on a contract. Correct Ans-Only the managing
members have access to the books and records of the LLC
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
Which of the following best describes the role of a general partner in a limited partnership?
The general partner usually has an insignificant role in the overall business decisions of the
limited partnership.
The general partner defers to the business decisions of the limited partners of the limited
partnership, unless those decisions seem economically unreasonable.
The general partner may participate in the business decisions of the limited partnership, but he
or she will never be held personally liable for the debts of the business.
The general partner manages the partnership and remains responsible for partnership liabilities.
Correct Ans-The general partner manages the partnership and remains responsible for
partnership liabilities.
A document that an LLC must submit to the secretary of state's office prior to doing business is
______.
The Operating Agreement.
, A Partnership Agreement.
The Articles of Organization.
A Security Interest Filing. Correct Ans-The Articles of Organization.
One of the disadvantages of a Limited Liability Partnership is double taxation.
True
False Correct Ans-False
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________________.
Attachment
Attainder
Execution
Garnishment Correct Ans-Attachment
A surety is liable to the creditor as soon as the principal ________.
Enters into the contract.
QUESTIONS & ANSWERS
A creditor must exhaust his or her judicial remedies against the principal before seeking to
recover from the surety.
True
False Correct Ans-False
Both contractors and subcontractors are entitled to a mechanic's lien against the owner for
nonpayment of their accounts.
True
False Correct Ans-True
Contractors have a longer period in which to file mechanic's liens that subcontractors or
suppliers have.
True
False Correct Ans-True
,Absent an agreement otherwise, a Limited Liability Company's operating agreement can only be
amended with the unanimous consent of the members.
True
False Correct Ans-True
Which of the following statements about the operation of a member-managed LLC is false?
Articles of organization must be filed with the state as part of the application process.
The application must state that it is to be a member-managed LLC.
Only the managing members have access to the books and records of the LLC
Any member of the LLC may bind the LLC on a contract. Correct Ans-Only the managing
members have access to the books and records of the LLC
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
Which of the following best describes the role of a general partner in a limited partnership?
The general partner usually has an insignificant role in the overall business decisions of the
limited partnership.
The general partner defers to the business decisions of the limited partners of the limited
partnership, unless those decisions seem economically unreasonable.
The general partner may participate in the business decisions of the limited partnership, but he
or she will never be held personally liable for the debts of the business.
The general partner manages the partnership and remains responsible for partnership liabilities.
Correct Ans-The general partner manages the partnership and remains responsible for
partnership liabilities.
A document that an LLC must submit to the secretary of state's office prior to doing business is
______.
The Operating Agreement.
, A Partnership Agreement.
The Articles of Organization.
A Security Interest Filing. Correct Ans-The Articles of Organization.
One of the disadvantages of a Limited Liability Partnership is double taxation.
True
False Correct Ans-False
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________________.
Attachment
Attainder
Execution
Garnishment Correct Ans-Attachment
A surety is liable to the creditor as soon as the principal ________.
Enters into the contract.
