LGS Test 3

Question 1

T/F- Organizing as a limited liability company prevents the firm from attracting foreign investors.

Answer 1

False

Question 2

T/F- If a member of a limited liability company dissociates from the firm in violation of the operating agreement, the member can be held liable for any loss to the business resulting from the withdrawal.

Answer 2

True

Question 3

T/F -When a person who is nota partner holds themself out as a partner, a court may impose liability- and partnership rights- on the alleged partner.****

Answer 3

False

Question 4

T/F-When the owner of a sole proprietorship dies, the business automatically transfers to family members or other heirs rather than being dissolved.

Answer 4

False

Question 5

**Elliot is the sole proprietor of ON Your Mark, a game subscription service. As a sole proprietor, on the business’s profits, Elliot pays___.

Answer 5

only personal income tax