Steve,Martha,and Pete Formed an LLC Two Years Ago

question 47

Multiple Choice

Steve,Martha,and Pete formed an LLC two years ago.Steve has contributed $100,000,Martha has contributed $50,000,and Pete has contributed $50,000 to date to the LLC.The LLC made a profit of $30,000 in two years.By default,how much will Steve's share of profits be?

• A) $10,000
• B) $20,000
• C) $15,000
• D) $30,000

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Definitions:

Simultaneous Move Games

A scenario in game theory where all players make their decisions or moves at the same time, without knowledge of the others' choices.

Nash Equilibrium

A concept in game theory wherein each player's strategy is optimal given the strategies of other players, resulting in no incentive to deviate unilaterally from their strategy.

Best Response

In game theory, the strategy that yields the highest payoff for a player, given the strategies chosen by other players in the game.

Strategy

A planned set of actions designed to achieve long-term or overall aims and objectives.