Which of the Following Is True of Profits and Losses

question 31

Multiple Choice

Which of the following is true of profits and losses of an LLC whose operating agreement does not contain profit or loss sharing clauses?

• A) A member who invests 10 percent capital must bear 10 percent of the losses.
• B) A member who invests 30 percent of the capital receives 30 percent of the profit.
• C) A member who invests 40 percent of the capital receives 20 percent of the profit.
• D) All members receive equal shares in profits regardless of the capital contributed.

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Definitions:

Photoreceptor Cells

Specialized neurons in the retina that convert light into electrical signals, enabling vision.

Tinnitus

A condition characterized by hearing noises (such as ringing, buzzing, or humming) in the ears when no external sound is present.

Nystagmus

An involuntary, rapid movement of the eyeballs, which can be horizontal, vertical, or rotary.

Otitis Media

An infection or inflammation of the middle ear.