Ch 38 False

A cooperative cannot be incorporated

False

A joint venture is taxed like a corporation

False

Every limited liability company is a citizen of every state.

False

For federal income tax purposes, one-member limited liability companies are never taxed as corporations

False

Foreign investors cannot participate in a limited liability company

False

Generally, a dissociated member of a limited liability company (LLC) has the right to buy his or her interest in the LLC from the other members

False

Generally, if a member dissociates form a limited liability company (LLC), the other members cannot continue to carry on the LLC's business

False

If a dispute arises and the applicable limited liability company statute does not cover the issue, a court will most likely dismiss the case

False

In a limited liability company, the management may consist of members or nonmembers, but not both

False

In many states, an operating agreement is required for a limited liability company to exist

False

In most states, a limited liability company can have only a limited number of members

False

In most states, a limited liability company must have at least two members

False

Joint venturers do not have the authority as agents to enter into contracts for the business that will bind the joint venture

False

Like the shareholders of a corporation, the owners of a limited liability company are liable for the obligations of the firm to the full limit

False

Limited liability companies (LLCs) are governed by federal LLC statutes

False

Limited liability companies cannot enter into contracts or hold title to property

False

Most states apply to a limited liability company (LLC) formed in another state the law of the state where the LLC currently does business

False

Normally, a member who dissociates from a limited liability company (LLC) has the right to force the LLC to dissolve.

False

The alter-ego theory cannot be applied to a limited liability company

False

The members of a limited liability company have unlimited liability for any loss or injury caused by the wrongful acts or omissions of the firm

False

To form a limited liability company, articles of organization must be filed with the federal Small Business Administration

False

Under most limited liability company statutes, if the members do not specify how profits will be split, they are divided in proportion to the members' capital investment

False

When a limited liability company is dissolved, any member, including those who wrongfully dissociated, may participate in the winding up process

False