Distinguish between a member-managed and a manager-managed LLC. Mention the exceptional actions that cannot be delegated to managers.
What will be an ideal response?
In a member-managed LLC, each member has equal rights in the management of the business of the LLC, regardless of the size of his or her capital contribution. Any matter relating to the business of the LLC is decided by a majority vote of the members. In a manager-managed LLC, the members and nonmembers who are designated managers control the management of the LLC. The members who are not managers have no rights to manage the LLC unless otherwise provided in the operating agreement. In a manager-managed LLC, each manager has equal rights in the management and conduct of the company's business. Any matter related to the business of the LLC may be exclusively decided by the managers by a majority vote of the managers. Certain actions cannot be delegated to managers but must be voted on by all members of the LLC. These include (a) amending the articles of organization, (b) amending the operating agreement, (c) admitting new members, (d) consenting to dissolve the LLC, (e) consenting to merge the LLC with another entity, and (f) selling, leasing, or disposing of all or substantially all of the LLC's property.
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Which element below is defined as the capacity to influence the actions of others?
A. authority B. competence C. power D. potential
The qualitative characteristics describe the attributes that enhance the usefulness of financial reporting information. The FASB's conceptual framework sets forth the qualitative characteristic of _____ that refers to the faithfulness with which accounting information represents what it purports to represent and the extent to which the information is both verifiable by independent measurers and
neutral with respect to the interest of a particular user group. a. relevance b. reliability c. comparability d. materiality e. understandability
Unit labor costs will not rise in unison with compensation rates if gains in __________ outstrip increases in hourly compensation.
Fill in the blank(s) with the appropriate word(s).
A(n) ________ contains one or more intermediary levels.
A. virtual organization B. network organization C. direct channel D. indirect channel E. channel community