Lynda Is a Member of a Manager-Managed LLC but Is

question 76

Multiple Choice

Lynda is a member of a manager-managed LLC but is not a manager.However,Lynda has considerable expertise in the business of the LLC.Lynda assisted the managers for the first couple of years of the LLC's existence without any difficulties.During the third year,Lynda began to challenge some of the decisions made by the managers who had begun to shut Lynda out of most decisions.Lynda demands that as a member of the LLC she be allowed to participate in its management and that she be compensated for the services she is providing.In this case:

• A) Lynda cannot demand a continued management role,but is entitled to compensation for the services already delivered.
• B) Lynda will be allowed to participate in management and is entitled to compensation.
• C) Lynda will be allowed to participate,but is not entitled to any compensation.
• D) Lynda is not entitled to participate in management,nor is she entitled to compensation.

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Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or social pressures.

Obedience

The act of following orders or complying with authority, often studied in the context of how people respond to commands from those in power.

Matching Hypothesis

The theory that individuals are more likely to form and succeed in relationships with others who are similarly attractive.

Altruism

The selfless concern for the well-being of others without the expectation of reward.