Peter,Preston,and Penny Organize an LLC in January

question 78

Multiple Choice

Peter,Preston,and Penny organize an LLC in January.While composing the operating agreement,they forget to include an amendment clause.Six months later,the situation demands an amendment to the operating agreement.Which of the following would best apply in this scenario?

• A)The operating agreement can be amended if all three members approve.
• B)The operating agreement cannot be amended as it contains no amendment provision.
• C)The operating agreement can be amended with the affirmative majority of all shareholders.
• D)The operating agreement can be amended only 60 days after a new amendment provision is included.

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Definitions:

Production Possibilities Frontiers

is a curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.), assuming all inputs are used efficiently.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, starting in the United States, leading to high unemployment and financial instability.

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way, typically characterized by the absence of involuntary unemployment.

War

A condition of warfare involving various nations or distinct factions inside a nation.