Solved

Which of the Following Is True Regarding Any Duty of Care

Question 109

Multiple Choice

Which of the following is true regarding any duty of care owed by members of "member- managed" and "manager-managed" limited liability companies?


A) Members of both "member-managed" limited liability companies and "manager-managed" limited liability companies owe a duty of care not to engage in grossly negligent conduct that would injure their companies.
B) Members of "member-managed" limited liability companies owe a duty of care not to engage in grossly negligent conduct that would injure their companies, but members of manager-managed limited liability companies owe no such duty, so long as the members do not act as managers.
C) Members of "manager-managed" companies owe a duty of care not to engage in grossly negligent conduct that would injure their companies, but members of "member-managed" companies owe no such duty.
D) Neither members of "member-managed" nor "manager-managed" limited liability companies owe a duty of care to their respective companies.
E) Any duty of care owed by members of "member-managed" and "manager-managed" limited liability companies relates to a corresponding duty of loyalty.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents