Which of the following is true of liabilities of LLCs?

Question

Quizplus · Accepted Answer

Members of LLCs are only liable up to the extent of their capital contributions. This means that their personal assets are not at risk in case the LLC faces any legal action or debt obligations.

Answer: D
 LLCs are not liable for losses caused due to negligence of their managers during the ordinary course of business. However, if the actions of the managers go beyond the scope of their authority, the LLC can be held liable for their actions.

Option B is not correct because managers of LLCs are not personally liable for the debts, obligations, and liabilities of the LLC, unless they have taken on personal liability through an agreement or action. Option C is also not correct because LLCs can be held liable for the actions of their employees if the actions are within the scope of their employment.

Which of the Following Is True of Liabilities of LLCs