LLC and One-Person LLC Quiz

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By RealisticElbaite

Quiz

Flashcards

36 Questions

An LLC's liability is independent of the financial liability of each partner

A one-person LLC owner has the power and authority of the manager and board of directors

The MOA must include the name of partners, company name, headquarters, objectives, capital division, management, company's term, assigning equity stake, and methods of distributing profits/losses

The appointment of LLC managers can be managed by one or more managers who can be either partners or third parties

The method of management of the company is determined by the MOA or the partners

If a manager's position is vacant, a partner can appoint a new manager within 15 days of knowledge of the vacancy

Partners can dismiss managers, but if the manager is one of the partners, he cannot vote when it comes to his dismissal

The GA will be held at least once a year, 6 months before the company’s financial year ends

Partners have the right to participate in discussions and voting based on the number of shares they have

Capital will be mentioned in the MOA

The company can suspend the rights of equity shares holders until they choose one to be the sole holder

The GA will determine how profits are distributed to the partners after deduction if needed

Partners have the right to ______ in discussions and voting, and have a number of votes based on the number of shares he has

Information must be confidential & must not cause damage to company or partner or they’ll be liable for ______

The ______ will represent the LLC in front of the court, arbitration tribunals, and third parties

The company is liable for the manager’s acts that fall within the company’s ______

The GA will be held based on the MOA, at least once a year, 6 months before the company’s financial year ends - Managers or auditor or partners can ______ the meeting, the notification must be sent 21 days before the meeting

Limited Liability Company: is a company established by one or more natural or legal person and its liability is independent of the financial liability of each partner - Only the company will be responsible for the debts & obligations that arise out of the business, so neither the owner nor the partner will be held liable except, only up to their ______

The appointment of LLC managers is under the MOA or Independent Contract Management of the company – The MOA or the partners will determine the ______ of management

Partners can go to court to request ______ of manager

The GA will determine how ______ are distributed to the partners after deduction if needed

Capital – capital will be mentioned in the MOA - If the equity shares is held by several people, the company can ______ their rights until they choose one to be the sole holder

MOA must include: * Name of partners * Name the company. * Headquarters. * Company’s Objectives * Capital and its division among partners * Management of company * Company’s term *Assigning equity stake *Methods of distributing ______/losses

Appointment of LLC managers – it can be managed by one or more managers they can be either partners or third parties - Appointment of managers is under the MOA or ______ Contract

What does MOA stand for and what must it include?

What is the liability of a limited liability company in relation to its partners?

Can a partner dismiss a manager if the manager is also a partner?

What is the requirement for holding a General Assembly (GA) meeting?

What can the company do if the equity shares are held by several people?

Who has the right to represent the LLC in front of the court, arbitration tribunals, and third parties?

What happens if a manager's position becomes vacant?

What must partners agree to when applying for incorporation?

How are profits distributed to the partners?

What is the responsibility of the company regarding the manager's acts?

What rights do partners have in the company?

What can partners do if they hold all the shares?

Description

Test your knowledge about Limited Liability Companies (LLC) and One-Person LLCs with this quiz. Learn about the establishment, liability, and management of these business entities.

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