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Ricardo Has a New Startup and Has Hired His Brother

question 142

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Ricardo has a new startup and has hired his brother and nephew as part of the management team. Which of the following is one of the possible disadvantages of this arrangement?


Definitions:

Limited Liability Company

A type of business structure where owners have limited personal liability for the debts and actions of the company.

Legal Person

An individual or organization that has legal rights and obligations, capable of entering into legal contracts, and can sue or be sued.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.

Hold Title

The legal right of owning a piece of property, whether it's real estate or a vehicle, indicated by a document called a title.

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