Jay is a member of Kitchen Cookouts,LLC,a limited liability company.Jay is liable for Kappa's debts

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Quizplus · Accepted Answer

As a member of a limited liability company, Jay's liability is limited to the extent of his investment in the firm. This is the main advantage of forming an LLC, as it provides personal asset protection and limited exposure to business debts. Therefore, Jay is not liable for Kappa's debts to the full extent or in proportion to the total number of members, as in a general partnership. However, if Jay has personally guaranteed any of the debts or acted fraudulently or illegally, he may still be held personally liable.

Jay Is a Member of Kitchen Cookouts,LLC,a Limited Liability Company