Which of the Following Is True About the Ability of a Member

question 58

Multiple Choice

Which of the following is true about the ability of a member of an LLC to bind a member-managed LLC to a contract?

• A) Members of the LLC have authority to bind the LLC,and this authority cannot be taken away.
• B) Members of the LLC have authority to bind the LLC to contracts only if this authority is granted in the operating agreement.
• C) Members of the LLC have authority to bind the LLC,and if this authority is restricted by agreement,then it will terminate any risk of the member binding the LLC to a contract.
• D) Members of the LLC have authority to bind the LLC,and if this authority is restricted by agreement,there remains a risk that the member retains apparent authority to bind the LLC unless appropriate steps are taken.

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Definitions:

Business People

Individuals engaged in commercial, industrial, or professional activities, often with the goal of generating profits.

Sophisticated Client

A Sophisticated Client is an individual or organization with extensive knowledge and experience in a particular field, enabling them to make informed decisions regarding complex transactions or legal matters.

Legal Fees

Charges for the professional services of a lawyer or law firm.

Starting A Business

The process of planning, conceptualizing, and legally establishing a new commercial enterprise, involving tasks such as registration, financing, and marketing.