In Lach VMan O'War,LLC,the Case in the Text,why Did the Court Hold

question 49

Multiple Choice

In Lach v.Man O'War,LLC,the case in the text,why did the court hold that the general partners were not required to comply with the requirements for conversion?

• A)A new LLC was formed and the limited partnership dissolved.
• B)The partners did not owe a fiduciary duty to one another.
• C)The partners were unable to carry out the business due to extenuating circumstances.
• D)The partnership agreement contained a conversion clause.

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Definitions:

Marginal External Benefit

Increased benefit that accrues to other parties as a firm increases output by one unit.

Pollution Emissions

The release of pollutants into the environment, typically referring to harmful substances discharged from industries, vehicles, and other sources.

Marginal External Cost

The cost resulting from producing one additional unit of a good that is incurred by someone other than the producer.

Fixed Proportions Technology

Fixed proportions technology is a production process where inputs must be used in strict, fixed ratios to produce outputs, with no possibility of substitution between inputs.