Philip and Deborah Form an LLC

question 44

Multiple Choice

Philip and Deborah form an LLC.Philip contributes $50, 000 capital, and Deborah contributes $75, 000 capital.They do not have an agreement as to how profits are to be shared.If the LLC makes $100, 000 profit in its first year, how will the profit be divided among the members?

• A)Philip gets $30, 000 and Deborah gets $70, 000.
• B)Philip gets $50, 000 and Deborah gets $50, 000.
• C)Philip gets $25, 000 and Deborah gets $75, 000.
• D)Philip gets $35, 000 and Deborah gets $65, 000.

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Definitions:

Bounded Rationality

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