A Nonmanager Member of an LLC Is Not Entitled to Remuneration

question 58

True/False

A nonmanager member of an LLC is not entitled to remuneration for services performed for the LLC at any time.

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Definitions:

Line-item Budgets

Budgets that list individual sources of income and expenses, providing a detailed financial overview for monitoring and planning.

Flexible Budgeting

An approach in budgeting that allows for adjusting budget allocations based on varying levels of activity or output.

Unfavorable Variance

A situation where actual costs exceed the standard or budgeted costs, often indicating inefficiencies or increased expenses.

Favorable Variance

A financial term indicating that actual costs were lower or revenues were higher than planned.