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

question 24

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 Martin correct that Bruno can be a limited LLC member but would not have any say in the company?

• A) No, in general, each member of an LLC may have a say in the management of the company.
• B) Yes, like a limited partnership, an LLC can have limited partners and general partners.
• C) Although an LLC does not have limited partners and general partners, one can be a limited member without any say in the company.
• D) Yes, like a limited partnership, only the general members of an LLC make management decisions.
• E) Martin is correct.

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Definitions:

Intangible

Assets or properties that do not have physical substance, such as patents, copyrights, or brand reputation.

Material Facts

Important facts that could influence a decision maker’s conclusion or outcome in a legal, financial, or commercial context.

Insurer

A company or entity that provides financial protection against specified risks in return for premiums.

Disclosure

The act of making new or secret information known.