Chapter 31, BUSINESS LAW II

Assignment 4: 24--Starting an Organization

I. ReadRidgeway v. Silk(p. 806). and answer the following questions:

1. What is the issue?

2. Are members of an LLC personally liable for the debts of the business?

3. Were the two defendants negligent that night?

4. What could the defendants have done to protect themselves?

5.Under what are some circumstances that being members of an LLC mayprotect them?

II. Answer Discussion Question # 2 (p. 823).

III. What is the difference between close corporations and S corporations?