Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jasmin, Shou-Yi, and Vanessa form an LLC, and each contributes $25.000 in capital. The LLC operates for a period of time, during which it borrows

image text in transcribed
Jasmin, Shou-Yi, and Vanessa form an LLC, and each contributes $25.000 in capital. The LLC operates for a period of time, during which it borrows money from banks and purchases goods on credit from suppliers. After some time, the LLC experiences financial difficulties and goes out of business. If the LLC fails with $500,000 in debts, which of the following is an accurate statement regarding the liability of Jasmin. Shou-Yi, and Vanessa? Each will lose her capital contribution of $25,000, but will not be personally liable for the rest of the unpaid debts of the LLC. Each will lose her capital contribution of s25,000, and will be personally liable for the rest of the unpaid debts of the LLC. Each will not be personally liable for the $500000 in debts, and will be reimbursed for her $25000 capital contribution. Each will not be personally liable for the $500,000 in debts and a constructive trust for the entire $75,000 in capital contributions will be imposed so that Jasmin Shou-Yi and Vanessa can form a new business venture

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Anti Money Laundering

Authors: Dennis Cox

1st Edition

0470065745, 978-0470065747

More Books

Students also viewed these Finance questions