Asked by Alpha Drone on May 18, 2024
Verified
In most circumstances, the manager of a limited liability company is liable in that capacity for the liability of the firm.
Manager Liability
The responsibility and potential legal accountability of managers for actions taken within the scope of their managerial roles.
Limited Liability Company
A corporate structure that integrates the limited liability characteristic of a corporation with the tax-pass-through trait of sole proprietorships or partnerships.
- Distinguish between the roles and liabilities of members and managers in LLCs.
Verified Answer
AC
ashley chinnMay 19, 2024
Final Answer :
False
Explanation :
In a limited liability company (LLC), the manager typically is not personally liable for the debts or liabilities of the company, as the structure of an LLC is designed to protect its owners and managers from personal liability for the company's debts and obligations.
Learning Objectives
- Distinguish between the roles and liabilities of members and managers in LLCs.