Gerard and Tony organize an LLC (limited liability company) by investing $55,000 and $45,000 respectively
The operating agreement states that profits are to be shared in the ratio of 55:45 between Gerard and Tony and makes no mention of sharing losses. The LLC incurs a loss of $100,000 in its first year. How is this loss shared?
A) Both Gerard and Tony have to pay $50,000 each.
B) Gerard pays $55,000, while Tony pays $45,000.
C) Gerard pays $45,000, while Tony pays $55,000.
D) Gerard and Tony are not liable for the losses of the LLC.
A
You might also like to view...
In your textbook, which one of the following is an extreme example of the recruitment and selection of applicants for a job?
a. SMS messaging applicant on a mobile or cell phone b. The show called The Apprentice c. Multiple hurdles d. All of the above
Why do some theorists write about decision-making using the metaphor of the garbage can?
a. Decision-making involves rubbish in, rubbish out b. Because decision-making is such a messy business c. Management decision-making jumbles up problems and solutions d. Both b and c
Similar to mathematical and analytical models, simulation is restricted to using the standard probability distributions
Indicate whether the statement is true or false
In a California lawsuit between a U.S. resident and a manufacturer based in Taiwan, what might limit the jurisdiction of the California court?
A) The Due Process Clause of the Fourteenth Amendment B) Sovereign immunity C) The Hague Convention on Taking Evidence Abroad D) Comity E)All of the above