Philip and Deborah Form an LLC

question 38

Multiple Choice

Philip and Deborah form an LLC . Philip contributes $50,000 capital, and Deborah contributes $75,000 capital. They do not have an agreement as to how profits are to be shared. If the LLC makes a $100,000 profit in its first year, how will the profit be divided among the members?

• A) Philip gets $30,000, and Deborah gets $70,000.
• B) Philip gets $50,000, and Deborah gets $50,000.
• C) Philip gets $25,000, and Deborah gets $75,000.
• D) Philip gets $35,000, and Deborah gets $65,000.

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Definitions:

Feasibility Reports

Documents that assess the practicality of a proposed project or system, evaluating its viability and potential to succeed.

Plan

refers to a detailed proposal for doing or achieving something, outlining steps, resources needed, and timelines.

Proposal

A plan or suggestion, especially a formal or written one, put forward for consideration by others.

Summary

A brief statement or account covering the main points or highlights of a subject.