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:

Article 2A

A section of the Uniform Commercial Code that covers leasing agreements, setting forth the laws governing leases of personal property.

Drivers Lease Company

A concept that might refer to businesses offering lease agreements for vehicles, specifically targeting drivers for personal or commercial use, though "Drivers Lease Company" as a specific term may not be widely recognized.

Oceangoing Vessel

A ship designed and equipped to travel across oceans.

Merchant's Firm Offer

A legal concept in commercial law where a merchant offers to sell goods in a written and signed promise that the offer will remain open and cannot be revoked for a certain period of time.