Kristal Is a Member of Laboratory CSI Services,LLC,a Limited Liability

question 49

Multiple Choice

Kristal is a member of Laboratory CSI Services,LLC,a limited liability company.Kristal can participate in the firm's management

• A)only to the extent that she assumes liability for the firm's debts.
• B)only to the extent of her investment in the firm.
• C)to any extent.
• D)to no extent.

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Definitions:

Cash Payback Method

A capital budgeting technique that calculates the length of time required to recoup the original investment through cash flows.

Cash Payback Period

A method of evaluating a capital investment proposal that focuses on the expected period of time between the date of an investment and the recovery in cash of the amount invested.

Amount Invested

The total sum of money committed into a venture, asset, or security by an investor or group of investors.

Investment Date

The specific date on which an investment was made or acquired, which is important for calculating holding periods, interest, dividends, and capital gains.