Where a Disassociating Member of an LLC Is Entitled to Payment

question 71

True/False

Where a disassociating member of an LLC is entitled to payment for her interest,she is entitled to fair market value even if the operating agreement provides otherwise.

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Definitions:

Stockholders' Equity

Refers to the ownership interest of shareholders in a corporation, calculated as the company's total assets minus its total liabilities.

Treasury Stock

Stocks that have been distributed and then bought back by the issuing corporation, thus decreasing the volume of available shares in the market.

Total Stockholders' Equity

The total value of a company's assets minus its liabilities, representing the ownership interest of the stockholders.

Corporate Form

A legal structure used by organizations that enables them to be recognized as separate legal entities from their owners, providing limited liability protection.