In Order to Obtain Limited Liability,Tom and Doris Formed an LLC

question 14

Essay

In order to obtain limited liability,Tom and Doris formed an LLC to operate their catering business.They sometimes deposited the proceeds from catering jobs into their personal checking accounts and if they needed to pay personal bills and were short of funds,they used the business account.If creditors of the business cannot get payment for their invoices,is there anything a court can do to help the creditors?

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Definitions:

Instructional Modules

Structured units designed to provide education on a particular topic, often part of a larger course or curriculum.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent or salaries.

Average Fixed Cost

Unchanging production costs (which do not fluctuate with production levels) divided by the output quantity.

Instructional Modules

Structured units of educational material or courses designed to teach a specific subject or skill.