Cross 9e TBB Ch18
Chapter 18
Limited Liability Business Forms
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
true/false questions
1. A limited liability company is a citizen of every state of which their members are citizens.
ANSWER: T PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
2. Members of limited liability companies are shielded from personal liability in many situations.
answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
3. The alter-ego theory can be applied to a corporation, but not a limited liability company.
answer: F PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
4. Limited liability companies are entities apart from their owners.
answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
5. A limited liability company can be taxed as a partnership.
ANSWER: T PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
6. The law governing limited liability companies is uniform.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
7. A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.
answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
8. For federal income tax purposes, one-member limited liability companies are not taxed.
ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
9. Most states apply to a limited liability company (LLC) formed in another state the law of the state where the LLC was formed.
answer: T PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
10. Limited liability company operating agreements typically contain provisions relating to management.
ANSWER: T PAGES: Section 2 TYPE: N BUSPROG:
Limited Liability Business Forms
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
true/false questions
1. A limited liability company is a citizen of every state of which their members are citizens.
ANSWER: T PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
2. Members of limited liability companies are shielded from personal liability in many situations.
answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
3. The alter-ego theory can be applied to a corporation, but not a limited liability company.
answer: F PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
4. Limited liability companies are entities apart from their owners.
answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
5. A limited liability company can be taxed as a partnership.
ANSWER: T PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
6. The law governing limited liability companies is uniform.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
7. A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.
answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
8. For federal income tax purposes, one-member limited liability companies are not taxed.
ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
9. Most states apply to a limited liability company (LLC) formed in another state the law of the state where the LLC was formed.
answer: T PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal
10. Limited liability company operating agreements typically contain provisions relating to management.
ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: