1. Assume the football team is set up as a general limited liability company (LLC) and that Lenny, Sarah, and Sam are the owners of the LLC. Lenny, Sarah and Sam are properly referred to as:
members.
partners.
shareholders.
limited partners.
2. Assume the football team is set up as a general limited liability company (LLC) and that Lenny, Sarah, and Sam are the owners of the LLC. The team is sued for negligence because an individual who turned to see the quarterback running naked crashed her car. Which of the following is true?
The LLC may have liability, but not the individual owners.
The individual owners may have liability, but not the LLC itself.
The LLC may have liability as well as the owners individually, but the owners' individual liability is limited to twice their investment in the company.
The LLC may have liability as well as the owners individually, and the owners' liability unlimited.
3. Assume the football team is set up as a general limited liability company (LLC) and that Lenny, Sarah, and Sam are the owners of the LLC. Which of the following statements is true?
The LLC is always taxed like a partnership.
The LLC is always taxed like a corporation.
The LLC can choose to be taxed like a corporation or like a partnership.
Neither the LLC nor its members pay tax on profits earned by it.