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. The articles of organization specify that it is a member-managed firm. Which of the following statements is true when it comes to management of the firm, such as the decision of whether to fire the quarterback?
All of the members would have a vote on management decisions.
The members would vote on a group of managers only from the members to manage the firm.
The members would designate a group of only non-member managers to manage the firm.
The members would designate a group of either member or non-member managers, or a combination to manage the firm.
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 articles of organization specify that it is a manager-managed firm. Which of the following statements is true when it comes to management of the firm, such as the decision of whether to fire the quarterback?
All of the members would have a vote on management decisions.
The members would vote on a group of managers only from the members to manage the firm.
The members would designate a group of only non-member managers to manage the firm.
The members would designate a group of either member or non-member managers, or a combination to manage the firm.
6. 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 and it is a member-managed firm. Which of the following is incorrect?
The profits from the team would pass through to the partners unless the LLC chooses to be taxed as a corporation.
If any of the members were to act in the management of the team, they would lose their limited liability.
Distribution of the profit among the partners is set by statute.
The company must be formed through compliance with state statutes.