Becca Franklin and Suzanne Peterson Formed an LLC as Co-Owners

question 140

Multiple Choice

Becca Franklin and Suzanne Peterson formed an LLC as co-owners and managers.The LLC made $275,000 after expenses last year.There are no provisions in their operating agreement on how profits are to be split.​
-Becca Franklin and Suzanne Peterson have formed a general partnership.The partnership,BFSP Dental,sells used dental equipment.Tragically,Suzanne is killed in an auto accident.At the time of the accident,BFSP has two dental chairs ($50,000 each) and four high-powered drills ($30,000 each) .Suzanne's husband says that he just wants to take possession of one of the dental chairs and two of the drills.Which of the following is correct?

• A)​Suzanne's husband has a right to one-half of the partnership inventory.
• B)​Suzanne's husband has no right in the partnership or its inventory since the right of survivorship leaves Becca with the business.
• C)The chairs and drills belong to BFSP and cannot be taken by Suzanne's husband.
• D)After the business is restructured, Suzanne's husband can have the chair and drills.

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision making and problem-solving processes.

Algorithms

A set of instructions designed to perform a specific task or solve a particular problem.

Mental Sets

The framework of cognitive biases and predispositions to respond to a situation in a particular way, which can impact problem-solving abilities.

Fixation

An obsessive focus or attachment to someone or something that can result from unresolved developmental conflicts.