What is a distributional interest? Explain the terms of its transfer
What will be an ideal response?
A member's ownership interest in an LLC (limited liability company) is called a distributional interest.
A member's distributional interest in an LLC is personal property and may be transferred in whole or in part. Unless otherwise provided in the operating agreement, a transfer of an interest in an LLC does not entitle the transferee to become a member of the LLC or to exercise any right of a member. A transfer entitles the transferee to receive only distributions from the LLC to which the transferor would have been entitled. A transferee of a distributional interest becomes a member of the LLC if it is so provided in the operating agreement or if all the other members of the LLC consent.
You might also like to view...
Which carbohydrate is used to store energy in the liver?
A. glycerol B. cellulose C. glycogen D. starch E. chitin
Marketing managers should be able to explain the kinds of problems they are facing and the kinds of marketing research information that will help them make decisions.
Answer the following statement true (T) or false (F)
To produce a feasibility study, what action is needed?
a. documenting important parts of your business b. testing, information gathering, and analysis c. creating a well-defined financial forecasts d. meeting with the founders who will agree on the plan of action
To record adjusting journal entries in QuickBooks, select:
A. Accountant Menu > Make General Journal Entries B. Company Center > Journal Entry icon C. Company section of the Home Page > Journal Entry icon D. Banking section of the Home Page > Journal Entry icon