Which of the Following Is True of Compensation Offered by an LLC

question 79

Multiple Choice

Which of the following is true of compensation offered by an LLC?

• A) Managers of an LLC are entitled to compensation and not benefits.
• B) Members are not entitled to compensation for their services toward the LLC.
• C) Members are not indemnified for liabilities in the ordinary course of business.
• D) A nonmember manager of an LLC is not entitled to compensation.

---

Definitions:

Unqualified Indorsement

An endorsement on a financial instrument, like a check, that doesn't limit payment to any particular individual or entity.

Indorser

A person who transfers an instrument by signing (indorsing) it and delivering it to another person.

Guaranteeing Payment

The act of promising to fulfill the payment obligations of another party if they fail to pay as agreed.

Holder

An individual or entity that legally possesses a financial instrument, such as a check, bond, or stock certificate.