[Drone Debacle] Bruno and Martin Run Skyview, LLC, a Drone

question 61

Multiple Choice

[Drone Debacle] Bruno and Martin run Skyview, LLC, a drone company that takes aerial photographs. After an accident with the drone, Bruno tells Martin that he does not want to be involved in management any longer. Martin tells Bruno that if he stops participating in management, they will no longer be protected by the limited liability of an LLC. Bruno says that if there is a lawsuit, they are both equally liable. Martin replies that if Bruno wants, he could be a limited LLC member and then he won't have a say in the company.
-Is Bruno correct that they would both be equally liable?

• A) Bruno is incorrect, they are liable to the extent of the loans, if any, that they executed on behalf of the LLC.
• B) Bruno is incorrect, they are liable to the extent of their investment.
• C) Bruno is incorrect, they are liable to the extent of their participation in management.
• D) Bruno is incorrect, they are liable to the extent of the statutory percentage based on a calculation of risk.
• E) Bruno is correct.

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Definitions:

Social Relationships

The connections between individuals in a society, based on kinship, interest, or roles, which determine how people interact with each other.

Caring Commitments

Organizational policies and actions that demonstrate concern and support for the welfare of employees and other stakeholders.

Expectancy Theory

A motivational theory suggesting that an individual's effort level is based on their expected outcome or reward.

Skill-Development

The process of identifying skill gaps and systematically developing those skills through training and practice.