Anna and Brad Are Equal Partners in the AB LLC

question 198

True/False

Anna and Brad are equal partners in the AB LLC. If AB distributes $10,000 of cash to Anna and a capital asset valued at $10,000 to Brad, and if both Anna and Brad continue to be members of the LLC, the distribution is classified as a proportionate current distribution.

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Definitions:

Voice Mechanism

Communication by workers through their union to resolve grievances with an employer.

Worker Turnover

The rate at which employees leave a workforce and are replaced by new personnel.

Capital

Human-made resources (buildings, machinery, and equipment) used to produce goods and services; goods that do not directly satisfy human wants; also called capital goods. One of the four economic resources.

Featherbedding

A labor practice where unions require employers to hire more workers than are necessary, typically to protect or create jobs.