Mary, Harold, Harvey, and William form an LLC by contributing $20,000, $50,000, $55,000, and $150,000, respectively. The LLC is designated to be member-managed. When a decision is put to vote, Mary, Harvey, and Harold vote "yes," whereas William votes "no."
Which of the following is true in this context?

Question

Quizplus · Accepted Answer

In a member-managed LLC, decisions are typically made by a vote of the members, and the majority vote determines the outcome. Mary, Harvey, and Harold collectively have the majority over William, so their decision prevails.

Mary, Harold, Harvey, and William Form an LLC by Contributing