Sam Muller and Toby Richardson Organize an LLC in the State

question 49

Multiple Choice

Sam Muller and Toby Richardson organize an LLC in the state of Delaware.In the articles of organization, they specify the duration of the LLC as "25 years from the date of filing the articles of organization." Which of the following true in this context?

• A)The LLC is invalid, as it does not specify a date of termination.
• B)The LLC may be dissolved at will any time after 25 years from the date of filing the articles of organization.
• C)Muller and Richardson have organized a valid term LLC.
• D)Muller and Richardson have organized an at-will LLC.

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Definitions:

Variable Cost

A cost that increases when the firm increases its output and decreases when the firm reduces its output.

Average Total Cost

The total cost divided by the number of units produced, representing the average cost of production per unit.

Purely Competitive Industry

An industry characterized by many firms offering identical products where no single firm can influence the market price.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market, typically considered as the cost of doing business, including opportunity costs.