Asked by Omaimah Al Yousef on Apr 24, 2024
Verified
An operating agreement is adopted by members of a limited liability company.
Operating Agreement
A legal document outlining the governing procedures and policies of a limited liability company (LLC), including the members' rights, duties, and obligations.
Members
Members are individuals who belong to a group, organization, or body, often with certain rights, responsibilities, or a shared interest.
- Understand the importance of an operating agreement in the governance of a limited liability company's (LLC) internal activities.
Verified Answer
TW
Tanner Wells6 days ago
Final Answer :
True
Explanation :
An operating agreement is a key document used by members of a Limited Liability Company (LLC) to outline the business's financial and functional decisions including rules, regulations, and provisions. The purpose is to govern the internal operations of the business in a way that suits the specific needs of the business owners.
Learning Objectives
- Understand the importance of an operating agreement in the governance of a limited liability company's (LLC) internal activities.
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