Which of the Following Is True of the Profits and Losses

question 98

Multiple Choice

Which of the following is true of the profits and losses of an LLC whose operating agreement does not contain profit or loss sharing clauses?

• A) A member who invests 10 percent capital must bear 10 percent of the losses.
• B) A member who invests 30 percent of the capital receives 15 percent of the profit.
• C) A member who invests 20 percent of the capital receives 40 percent of the profit.
• D) All members receive equal shares in profits regardless of capital contributed.