Which of the Following Is True of the Liabilities of LLCs

question 33

Multiple Choice

Which of the following is true of the liabilities of LLCs (limited liability companies) ?

• A) Members of LLCs are liable to the extent of their capital contribution.
• B) Managers of LLCs are personally liable for the debts, obligations, and liabilities of the LLCs.
• C) LLCs are not liable for any loss or injury caused by their employees.
• D) LLCs are not liable for losses caused due to negligence of their managers during the ordinary course of business.

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Definitions:

Homogeneous Products

Products that are identical in quality and cannot be distinguished by consumers, making them perfect substitutes.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a product or service.

Perfectly Competitive Industry

A market structure where many firms offer identical products, and no single buyer or seller has the market power to influence prices.

Price Setters

Firms or entities that have the ability to influence or set the price of goods and services in a market due to lack of competition or market dominance.