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ABC LLC's Operating Agreement Is Silent on Several Important Issues

Question 21

Multiple Choice

ABC LLC's operating agreement is silent on several important issues involving management structure and organization. Therefore, what will the effect of these gaps be?


A) The LLC will fail due to specificity of the operating agreement.
B) The courts will determine on a case by case basis the missing issues.
C) Common law will govern any gaps in coverage of the operating agreement.
D) The LLC statute of the state in which it is organized will apply its default rules.

Correct Answer:

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