Which of the following is true of profits and losses of an LLC (limited liability company) whose operating agreement does not contain profit or loss sharing clauses?
A) A member who invests 10 percent capital must bear 10 percent of the losses.
B) A member who invests 30 percent of the capital receives 30 percent of the profit.
C) A member who invests 40 percent of the capital receives 20 percent of the profit.
D) All members receive equal shares in profits regardless of the capital contributed.
Correct Answer:
Verified
Q22: A(n) _ refers to a document that
Q24: In which of the following cases does
Q26: A(n)_ LLC (limited liability company)has no specified
Q28: A member's ownership interest in an LLC
Q30: John,Nathan,and Julio form JNJ,LLC (limited liability company)with
Q31: A limited liability company cannot be abbreviated
Q32: Peter,Preston,and Penny organize an LLC (limited liability
Q33: Sam Muller and Toby Richardson organize an
Q34: Gerard and Tony organize an LLC (limited
Q40: Which of the following is true of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents