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Phoenix Bookstore, LLC with Four Members Incurs Substantial Debt Due

Question 30

Multiple Choice

Phoenix Bookstore, LLC with four members incurs substantial debt due to a downturn in book purchases. At the end of the fiscal year they are $100,000.00 in debt. For how much will each of the four member be personally liable?


A) $25,000 each
B) The amount owed by each member will be in proportion to the percentage of ownership.
C) Each member would be personally responsible until all the debt is paid even if it means that some members have to pay more than others.
D) Nothing.

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