fin 240 kaplowitz video exercise 37.1: corporation or llc: which is better?

1 November 2023
4.8 (217 reviews)
5 test answers
question
What kind of business organization are Caleb and Anna operating under now?
answer
a general partnership
question
Suppose the agreement that was written does not say anything about how the partnership was to be run, how would the courts determine how the business is controlled?
answer
each partner would have equal votes as to the operation of the partnership
question
If Anna originally invested $5,000 and Caleb invested $1,000 in the business, and the business made a profit of $60,000, how would the profit be split?
answer
if the partnership agreement specifies how the profits will be split, then the proceeds will be distributed accordingly, otherwise the profits will be split evenly between anna and caleb
question
Assume that Wizard Internet is operating as a general partnership. What is Caleb's personal tort liability for Anna's actions within the scope of the business?
answer
caleb is personally jointly and severally liable, along with anna
question
Assume that Wizard Internet is allowed by state law to form a Limited Liability Partnership. If Anna and Caleb formed an LLP, which of the following is NOT true?
answer
if anna were to commit an act of malpractice, caleb would be liable as well
1 of 5

Unlock all answers in this set

Unlock answers (1)
question
What kind of business organization are Caleb and Anna operating under now?
answer
a general partnership
question
Suppose the agreement that was written does not say anything about how the partnership was to be run, how would the courts determine how the business is controlled?
answer
each partner would have equal votes as to the operation of the partnership
question
If Anna originally invested $5,000 and Caleb invested $1,000 in the business, and the business made a profit of $60,000, how would the profit be split?
answer
if the partnership agreement specifies how the profits will be split, then the proceeds will be distributed accordingly, otherwise the profits will be split evenly between anna and caleb
question
Assume that Wizard Internet is operating as a general partnership. What is Caleb's personal tort liability for Anna's actions within the scope of the business?
answer
caleb is personally jointly and severally liable, along with anna
question
Assume that Wizard Internet is allowed by state law to form a Limited Liability Partnership. If Anna and Caleb formed an LLP, which of the following is NOT true?
answer
if anna were to commit an act of malpractice, caleb would be liable as well