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Questions and Answers
What is the primary characteristic of a sole proprietorship?
What is the primary characteristic of a sole proprietorship?
In which office is the paperwork for registering a sole proprietorship usually filed?
In which office is the paperwork for registering a sole proprietorship usually filed?
What does the lack of legal distinction between the owner and the business imply for a sole proprietor?
What does the lack of legal distinction between the owner and the business imply for a sole proprietor?
What is the primary governing law for an LLC?
What is the primary governing law for an LLC?
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What type of liability do sole proprietors have for business debts?
What type of liability do sole proprietors have for business debts?
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What is typically established in an LLC's operating agreement?
What is typically established in an LLC's operating agreement?
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What is the tax reporting requirement for a sole proprietor?
What is the tax reporting requirement for a sole proprietor?
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In a member-managed LLC, what is true about management authority?
In a member-managed LLC, what is true about management authority?
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Which statement correctly describes management in a sole proprietorship?
Which statement correctly describes management in a sole proprietorship?
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What happens when a sole proprietor defaults on business obligations?
What happens when a sole proprietor defaults on business obligations?
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Which of the following statements regarding liability in an LLC is correct?
Which of the following statements regarding liability in an LLC is correct?
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What can sole proprietors do regarding delegation of authority?
What can sole proprietors do regarding delegation of authority?
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For federal income tax purposes, how is a multi-member LLC treated?
For federal income tax purposes, how is a multi-member LLC treated?
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What is a feature of the operating agreement in an LLC?
What is a feature of the operating agreement in an LLC?
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What does 'pass-through taxation' mean for LLC members?
What does 'pass-through taxation' mean for LLC members?
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What is one of the statutory limits regarding the operating agreement in an LLC?
What is one of the statutory limits regarding the operating agreement in an LLC?
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Which business structure typically provides full inside liability shields to all owners?
Which business structure typically provides full inside liability shields to all owners?
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Under which condition can limited partners in a Limited Partnership lose their liability shield?
Under which condition can limited partners in a Limited Partnership lose their liability shield?
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What is the main feature of outside liability exposure?
What is the main feature of outside liability exposure?
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Which of the following is NOT a reason for piercing the corporate veil?
Which of the following is NOT a reason for piercing the corporate veil?
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In what circumstance are general partners personally liable for the debts of the business?
In what circumstance are general partners personally liable for the debts of the business?
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Which professional entity provides some liability protection but requires all owners to be licensed for the services offered?
Which professional entity provides some liability protection but requires all owners to be licensed for the services offered?
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What is a defining characteristic of a Close Corporation?
What is a defining characteristic of a Close Corporation?
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What distinguishes a Benefit Corporation from a traditional corporation?
What distinguishes a Benefit Corporation from a traditional corporation?
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What is a defining feature of a Nonprofit Corporation?
What is a defining feature of a Nonprofit Corporation?
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Which organization type is known for managing a business through trustees?
Which organization type is known for managing a business through trustees?
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What best describes the concept of a Joint Venture?
What best describes the concept of a Joint Venture?
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What does the Internal Affairs Doctrine govern?
What does the Internal Affairs Doctrine govern?
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Which statement is true regarding a Low Profit Limited Liability Company (L3C)?
Which statement is true regarding a Low Profit Limited Liability Company (L3C)?
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What is the corporate income tax rate for Sub-C entities after the 2018 reform?
What is the corporate income tax rate for Sub-C entities after the 2018 reform?
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What is the total amount Clare ends up with after taxes if CCI earns $100,000 and distributes $79,000 as dividends?
What is the total amount Clare ends up with after taxes if CCI earns $100,000 and distributes $79,000 as dividends?
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How much more does Clare pay in total taxes when taxed under Sub-C compared to Sub-S?
How much more does Clare pay in total taxes when taxed under Sub-C compared to Sub-S?
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Which tax structure allows for the avoidance of double taxation?
Which tax structure allows for the avoidance of double taxation?
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In a disregarded entity, how is the net income or loss treated?
In a disregarded entity, how is the net income or loss treated?
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What is one limitation of a single-member LLC regarding tax options?
What is one limitation of a single-member LLC regarding tax options?
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What is one important factor business owners must consider when choosing a tax structure?
What is one important factor business owners must consider when choosing a tax structure?
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What happens to distributions from a Sub-C corporation?
What happens to distributions from a Sub-C corporation?
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What must a third party do to establish a claim of apparent authority in the H.H. Taylor Case?
What must a third party do to establish a claim of apparent authority in the H.H. Taylor Case?
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How does the Restatement (Third) of Agency differ from some courts regarding apparent authority?
How does the Restatement (Third) of Agency differ from some courts regarding apparent authority?
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What was the outcome for Monet when Bose charged paint despite being told not to?
What was the outcome for Monet when Bose charged paint despite being told not to?
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In the case of Arroyo, what allowed the paint store to charge paint to Monet's account despite Arroyo having been fired?
In the case of Arroyo, what allowed the paint store to charge paint to Monet's account despite Arroyo having been fired?
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What happens to apparent authority when a store knows of an agent's termination?
What happens to apparent authority when a store knows of an agent's termination?
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Which statement accurately describes the relationship between apparent authority and actual authority?
Which statement accurately describes the relationship between apparent authority and actual authority?
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What is the primary role of a principal's manifestation in establishing apparent authority?
What is the primary role of a principal's manifestation in establishing apparent authority?
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What is a key requirement for a court to impose a reliance element for apparent authority?
What is a key requirement for a court to impose a reliance element for apparent authority?
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Description
Test your knowledge on the characteristics and laws governing sole proprietorships and LLCs. This quiz covers various aspects including liability, management, and tax obligations related to these business structures.