Which of the following is true of profits and losses of an LLC 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
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