Match Column A with Column B 1) Limited liability a) Income from a business enti
ID: 1167137 • Letter: M
Question
Match Column A with Column B
1) Limited liability a) Income from a business entity that is not treated as a taxable incident and is simply passed through to the owners 2) Certificate of limited partnership b) a form of doing business that consists of at least one general partner and one limited partner 3) Fiducuary duty c) LLC managed by individuals who are directed by the membership to manage the firm 4) Limited liability company d) a form of business, often used in professional partnerships, that provides limited liability for its owners 5) Member-managed LLC e) Document filed at the secretary of states office that forms a limited liability company 6) "pass through concept" f) a duty of trust and confidence 7) right of first refusal g) a form of business that guarantees owners limtied liability for the debts of the business and "pass through" income tax treatment 8) limited partnership h) document filed with the secretary of states office that forms a liimited partnership 9) manager-managed LLC i) LLC managed by the membership 10) articles of organization j) guarantees current owners the opportunity to purchase an interest in an entity from a member who wishes to sell their interest before it is made available to those outside prospective buyersExplanation / Answer
Solution:
Column A
Column B
1
Limited liability
d
2
Certificate of limited partnership
h
3
Fiducuary duty
f
4
Limited liability company
g
5
Member-managed LLC
i
6
"pass through concept"
a
7
right of first refusal
j
8
limited partnership
b
9
manager-managed LLC
c
10
articles of organization
e
Working:
Limited liability refers to a form of business that facilitates limited liability for its owners
Certificate of limited partnership refers to documentation completed with the secretary of states office that forms a liimited partnership
Fiducuary duty refers to a trust and confidence duty assigned amoung the individuals
Limited liability company provides guarantees to it's owners with limtied liability for the debts of the business and also pass through treatment of income tax
Member-managed LLC is managed by it's members
Pass through concept states thatbusiness entity income should not treated be as a taxable incident and allowed it to through to the owners
Right of first refusal provides guarantee to the current owners the opportunity to purchase an interest from a member in an entity who is willing to sell their interest before it is made available to outside prospective buyers
Limited partnership refers to a business consisting of at least one limited partner and one general partner
Manager-managed LLC refers to LLC managed by person who are directed by the membership for managing the firm
Articles of organization refers to documents filed at the secretary of states office which forms a limited liability company
Column A
Column B
1
Limited liability
d
2
Certificate of limited partnership
h
3
Fiducuary duty
f
4
Limited liability company
g
5
Member-managed LLC
i
6
"pass through concept"
a
7
right of first refusal
j
8
limited partnership
b
9
manager-managed LLC
c
10
articles of organization
e