Sarah,who manages a limited liability company,borrows $500,000 from a bank.She is careful to sign the note to the bank in the name of the limited liability company only.When the company goes bankrupt,however,the bank seeks repayment from her.Is she liable?
A) yes, she is liable, but only because a bank note is involved; otherwise, she would have no liability
B) yes, she is liable as manager of the company
C) yes, she is liable, because the bank did not specifically give her a release
D) no, she is not liable, but only because bankruptcy is involved; otherwise, she would be liable
E) no, she is not liable, because a manager of a limited liability company is not personally liable for the debts of the company
Correct Answer:
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