Which of the Following Is True Regarding Conversion of an Existing

question 25

Multiple Choice

Which of the following is true regarding conversion of an existing business to a limited liability company,assuming any applicable requirements to do so are satisfied?

• A) An existing business may not be converted to a limited liability company.
• B) General partnerships may be converted to limited liability companies, but other business forms may not be converted.
• C) General partnerships and limited partnerships may be converted to limited liability companies, but corporations cannot.
• D) General partnerships and corporations may be converted to limited liability companies, but other business forms may not be converted.
• E) General partnerships, limited partnerships, and corporations may be converted to limited liability companies.

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Definitions:

Unenforceable

Refers to a contract or clause that, due to legal reasons, cannot be executed or enforced by law.

FOB

Free on Board; a contractual term indicating that the seller assumes responsibility for the goods until they are loaded onto a transport vessel.

Risk of Loss

The responsibility for damage or destruction to goods, typically determining who bears the cost when property is damaged during a transaction or transportation.

Total Loss

A situation in which property is so extensively damaged that repair is not reasonable and it's considered a complete write-off.