Member 1 and Member 2 establish an LLC that provides catering services. Member 1 and Member 2 elect to establish a manager-managed LCC (they are chefs and have no interest in running the business). They engage Manager to run the LLC. Manager is paid a salary, but does not own any of the membership interests in the LLC. Manager, with Member 1 and Member 2's agreement and assistance, arranges a $50,000 loan to the LLC from Local Bank. The LLC signs up hundreds of customers but cannot deliver the food as required and the business fails. When it fails, the LLC still owes Local Bank $47,500. To whom can Local Bank look for payment of the outstanding debt?

Group of answer choices

a. The LLC, because the loan was to the company.

b. Member 1 and Member 2, because they owned the company.

c. The LLC, Member 1 and Member 2, because the company is primarily liable and the owners of the company are responsible for any residual debts.

d. Manager, because she had control of the company.

Harry, Stanley, and Fred establish an LLC. Harry and Stanley spend most of their time traveling. Fred functions as the member-manager of the LLC and is solely responsible for all of the financial aspects of the company. One year, the annual distribution to members is much lower than usual. Fred emails Harry and Stanley to let them know, explaining that profits were way down. Harry and Stanley are very alarmed and return to town immediately (it is a Saturday). They go straight to Fred's house (Fred works from home) and demand to inspect the books and records of the LLC immediately. Fred refuses. Who wins?

Group of answer choices

a. Harry and Stanley, because each member is entitled to inspect the books and records of the LLC.

b. Fred, because it is a Saturday.

c. Harry and Stanley, because it is a member-managed LLC.

d. Fred, because he is solely responsible for managing the finances of the LLC.