Which of the Following Best Defines the Duty of Care

question 69

Multiple Choice

Which of the following best defines the duty of care to which a member of a member-managed LLC must adhere?

• A) the duty of not engaging in a known violation of law
• B) the duty of not usurping an opportunity of the LLC
• C) the duty of not competing with the LLC's business
• D) the duty of not engaging in undisclosed self-dealing

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Definitions:

Price

The financial valuation expected, obligatory, or handed in exchange for something.

Nonlabor Income

Income received that does not come from working, such as interest from savings, dividends from investments, or government benefits.

Leisure

Free time spent away from work and compulsory activities, often devoted to relaxation, hobbies, and personal enjoyment.

Wage Rate

The amount of compensation an employee receives in exchange for performing a specific job, typically expressed per hour or year.