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Norm,Cliff and Sam Form a Limited Liability Company

Question 65

Multiple Choice

Norm,Cliff and Sam form a limited liability company.Norm contributes $20,000,Cliff $30,000 and Sam $50,000.The operating agreement does not state how profits and losses are to be apportioned.The company makes a $60,000 profit during the year.Under the ULLCA,how will profits be divided?


A) Norm will receive $12,000,Cliff $18,000,and Sam $30,000.
B) Norm will receive $20,000,Cliff $20,000,and Sam $20,000.
C) Norm will receive $18,000,Cliff $12,000,and Sam $30,000.
D) Norm will receive $15,000,Cliff $15,000,and Sam $30,000.

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