Which of the following is nottrue of a limited liabilitypartnership? *Most states restrict this form ofownership to certain types ofO professions such as attorneys,physicians, dentists, accountants,etc.It must involve a general partner, alimited partner, a silent partner, anda dormant partner.Although LLPS have many of theO characteristics of partnerships, theyare taxed as a corporation.All partners are limited partners.

Business is an activity of making money or one’s living by producing some products or services or…

Answered: limited partner, a silent a dormant…

Business

Management

limited partner, a silent a dormant partner. Although LLPS have ma O characteristics of partm

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Related questions

Q: Matthew Mark and Luke, three auto mechanics, were delighted to start an auto repair business and…

A: In the scenario presented, Matthew, Mark, and Luke, three auto mechanics, have established a private…

Q: Any of the following may make up a partnership EXCEPT: (A) Two or more Individuals. (B) A…

A: A partnership is a legal form of business organization in which two or more individuals, entities,…

Q: Explain the difference between a sole proprietorship, LLC/PLLC, and corporation. Include advantages,…

A: Organizations function in a dynamic environment. It is important to function well in the business…

Q: June 7 Issued 4,000 shares of $3 par value common stock for cash of $12 per share Aug. 16 Issued…

A: June 7 Cash…

Q: When Joe saw what a great job Sales Associate Diana did in hosting his neighbor's open house, Joe…

A: The objective of the question is to identify the type of agency that has been created between Joe…

Q: A year ago, Chris joined with other investors to open a restaurant, Honest Ozzie's Delicatessen. The…

A: A partnership is a business organization in which two or more people share ownership and operate the…

Q: Question 43 Which of the following is true about mergers? Shareholders of the acquired corporation…

A: Merger refers to a type of deal or transaction in which two or more than two legal entities join…

Q: Why can't a business choose to for an LLC, but they can form an LLP?

A: Every business is different in terms of tax situations, many regulations have notable changes from…

Q: What formalities must be followed to create a testamentary trust?

A: Trusts are universally perceived as preferred vehicles for home and progression arranging. Albeit…

Q: Kay, Lei, and May formed a partnership to run a petrol station. The partnership agreement expressly…

A: Kay, Lei, and May formed a partnership to operate a petrol station. Their partnership agreement…

Q: 6/24, 11:32 AM Rodney and his wife Sadia operate their b are not required to file a separate tax…

A: The right business structure is a significant driver in the success of young entrepreneurs, such as…

Q: Ho, Io, and Jo formed an ordinary partnership, called 3OS, some 5 years ago. Question Ho is a…

A: Question 1:Ho, Io, and Jo formed an ordinary partnership, called 3OS, some 5 years ago. Question:Ho…

Q: A contract Question 12Answer a. may become void at the will of party. b. cannot become void…

A: The correct answer is: c. may become void subsequent to its formation Explanation: A contract may…

Q: In a partnership a partner who is unknown to the other partners yet participates in the running of…

A: A partner can provide a fledgling or expanding business with knowledge, commercial contacts, and…

Q: What is the effect of a merger agreement consummated in violation of the requirements on mandatory…

A: Mergers and acquisitions have become commonplace in the business world, helping organisations to…

Q: Dennis is the oldest among the four shareholders and is in the poorest health. He is concerned that…

A: The objective of the question is to identify the type of transfer restriction that is being…

Question

Which of the following is not
true of a limited liability
partnership? *
Most states restrict this form of
ownership to certain types of
O professions such as attorneys,
physicians, dentists, accountants,
etc.
It must involve a general partner, a
limited partner, a silent partner, and
a dormant partner.
Although LLPS have many of the
O characteristics of partnerships, they
are taxed as a corporation.
All partners are limited partners.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.

Similar questions

Was it good for Jacoby, Meyers, and Koff to set up a general partnership for their Jacoby & Meyers law firm?
A mutual will cannot be unilaterally revoked after one of the parties has died. true or false
b. With relevant examples, explain the following; i. Primary appointment and secondary apportionment ii. Direct cost and indirect cost (
Identify five reasons why a partnership may be dissolved.
When a new corporation is formed to acquire two or more other corporations through an exchange of voting stock; the acquired corporations then cease to exist as separate legal entities, it's a Statutory Merger. True False
Imagine Ali, an Omani citizen, and Sara, a Canadian Citizen, decide to start a Limited Liability Company (LLC) together . Describe in detail the steps to be taken by Ali and Sara to establish an LLC . Is there any limitations for Sara (as a non-Omani investor) to start a business in Oman? *
3 differences between a company and a partnership
Skip and Jack are the shareholders of the Blue Fish Event Corporation. Skip and Jack regularly put on classy events on or near the beach, so they have a special insurance policy to protect their assets. Business has been slow as fewer large beach weddings are taking place, so Skip and Jack use a large fan to blow down and damage most of their décor assets, some of which were personal assets of Skip and Jack, to collect the insurance benefits. (a) Assuming their acts are proven, will a court allow Skip and Jack to recover the insurance money? (b) Is this a situation where the corporate veil may be pierced? Why or why not? (c) What would it mean for Skip and Jack if the corporate veil is pierced in this situation?
The following statements are true, except * -A limited partner is liable for partnership debts up to the extent of his capital contribution -An industrial partner can also be a capitalist partner at the same time. -An industrial partner who engages in business for himself can be excluded from the partnership. -A capitalist partner may engage in the same line of business as that of the partnership -answer not given The following partnership accounts represent a liability of a partner to the partnership, except * -Receivable from partner -Loan to partner -Due from partner -all of the above -answer not given A partner’s capital account is credited for the following transactions, except * -Share in net income -loan from the partner -Original and additional investment -both A and C -answer not given
A, B and C were in general partnership business. Because of wrong decision taken by Mr.C the business got losses, which even the business assets cannot cover those liabilities and all of the partners will be subjected for unlimited liabilities. Who will be liable for the business debts and has to use personal property to pay for the losses. Select one: a. Partner B b. Partner C c. Partner A d. All the partners
A general partnership would be the best choice of legal entity for a business such as a manufacturing company. True False
State the difference between a closed corporation and an open corporation.