Peter, Preston, and Penny Organize an LLC in the Month

question 62

Multiple Choice

Peter, Preston, and Penny organize an LLC in the month of January. While composing the operating agreement, they forget to include the amendment clause. Six months later, the situation demands an amendment to the operating agreement. Which of the following would best apply in this scenario?

• A) The operating agreement can be amended if all three members approve.
• B) The operating agreement cannot be amended as it contains no amendment provision.
• C) The operating agreement can be amended with the affirmative majority of all shareholders.
• D) The operating agreement can be amended only 60 days after a new amendment provision is included.

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Definitions:

A*B Interaction Effect

The effect on a dependent variable that results from the combination of two independent variables, distinct from the effect of each variable individually.

Degrees of Freedom

Represents the number of independent values or quantities that can vary in an analysis without violating any constraints.

Number of Levels

Refers to the different categories or values that an independent variable can take in an experiment or study.

Main Effect

The impact of a single independent variable on a dependent variable in an experimental design.