44. One disadvantage of an LLC is that: a. it is taxed like a partnership, unless the members choose differently. b. its members have limited liability for LLC debts. c. there is no uniform law governing LLCs in the United States. d. they are subject to extensive regulation by the Treasury Department. 45. Generally speaking, what will the legal effect be of the personal bankruptcy of one limited partner? a. The partnership will not dissolve unless the partner's bankruptcy leads to the bankruptcy of the limited partnership. b. The partnership will be dissolved. c. The partnership will be forced to liquidate. d. The partnership will begin winding-up procedures. 46. Mitchell owns 3,000 shares of Dynamix Corporation. Dynamix decides to merge with Clomator, Inc., which makes plastic packaging for food. Mitchell is very unhappy about this decision. If Mitchell does not want to sell his stock, what is one other option he has to express his dissatisfaction? a. If appraisal rights are available, he may choose to exercise those rights. b. If he follows the correct procedure, he may demand a short-form merger. c. He may use his preemptive rights. d. He may require a dissolution. 47. Which of the following debts ARE dischargeable in a liquidation bankruptcy? a. Back taxes. b. Loans taken to pay federal taxes. c. Loans taken to pay for home repairs. d. Child support payments. 48. When a limited partnership becomes a limited liability limited partnership, which parties' responsibilities change? a. The limited partners' responsibilities. b. The responsibilities of the general partners. c. The responsibilities of the members. d. The responsibilities of the secretary of state. 49. When payment of debt is guaranteed by personal property owned by the debtor or in which the debtor has a legal interest, you have: a. a bankruptcy. b. a conversion. c. a secured transaction. d. a liquidation. 44. One disadvantage of an LLC is that: a. it is taxed like a partnership, unless the members choose differently. b. its members have limited liability for LLC debts. c. there is no uniform law governing LLCs in the United States. d. they are subject to extensive regulation by the Treasury Department. 45. Generally speaking, what will the legal effect be of the personal bankruptcy of one limited partner? a. The partnership will not dissolve unless the partner's bankruptcy leads to the bankruptcy of the limited partnership. b. The partnership will be dissolved. c. The partnership will be forced to liquidate. d. The partnership will begin winding-up procedures. 46. Mitchell owns 3,000 shares of Dynamix Corporation. Dynamix decides to merge with Clomator, Inc., which makes plastic packaging for food. Mitchell is very unhappy about this decision. If Mitchell does not want to sell his stock, what is one other option he has to express his dissatisfaction? a. If appraisal rights are available, he may choose to exercise those rights. b. If he follows the correct procedure, he may demand a short-form merger. c. He may use his preemptive rights. d. He may require a dissolution. 47. Which of the following debts ARE dischargeable in a liquidation bankruptcy? a. Back taxes. b. Loans taken to pay federal taxes. c. Loans taken to pay for home repairs. d. Child support payments. 48. When a limited partnership becomes a limited liability limited partnership, which parties' responsibilities change? a. The limited partners' responsibilities. b. The responsibilities of the general partners. c. The responsibilities of the members. d. The responsibilities of the secretary of state. 49. When payment of debt is guaranteed by personal property owned by the debtor or in which the debtor has a legal interest, you have: a. a bankruptcy. b. a conversion. c. a secured transaction. d. a liquidation
