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Bill,Bob,and Susie Form a Limited Liability Corporation,and Each Contributes $50,000

Question 110

Multiple Choice

Bill,Bob,and Susie form a limited liability corporation,and each contributes $50,000 in capital.The limited liability company is in operation for two years,but then files bankruptcy,with $500,000 in debt.How much do Bill,Bob,and Susie stand to lose?


A) Bill, Bob, and Susie stand to lose their capital contribution, but that is all.
B) Bill, Bob, and Susie are each personally liable for one-third of the debt of the company.
C) Bill, Bob, and Susie are each personally liable for the entire debt of the company.
D) Bill, Bob, and Susie are each personally liable for the entire debt of the company, unless each can demonstrate a lack of negligence on his or her part.
E) Bill, Bob, and Susie are each personally liable for one-third of the debt of the company, unless he or she can establish a voting record against poor managerial decisions involving the company in the previous twelve months.

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