In in Re 1545 Ocean Avenue, LCC, Where the Two

question 384

Multiple Choice

In In re 1545 Ocean Avenue, LCC, where the two managers of a real estate development limited liability company disagreed about the project and one of the managers, King, sued for work to stop and the company to be dissolved, the appeals court reversed the trial court's decision to grant King's requests because:

• A) the operating agreement gave King only a 49% share of power, so he could not dissolve the company
• B) there was sufficient evidence that the LLC could not effectively operate under the operating agreement
• C) there was not sufficient evidence that the LLC could effectively operate under the operating agreement
• D) the operating agreement specified that one manager could not dissolve the LCC
• E) none of the other choices are correct

---

Definitions:

Disposable Income

The sum of funds a family can use for expenditures and savings once income taxes are deducted.

APC

Average Propensity to Consume (APC) is a measure of the fraction of income spent on consumption rather than saving in an economy.

Disposable Income

Discretionary income for households to utilize in their saving and spending after the enforcement of income taxes.

Consumption

Refers to the use of goods and services by households or individuals for personal needs or for leisure, as opposed to investment or savings.