Asked by Stephanie Springstroh on Apr 30, 2024
Verified
Singh, a member of Trucking LLC, ceases to be associated in the carrying on of the business of the firm. Despite the dissociation
A) the member's duty of care continues with respect to prior events.
B) the member's duty of loyalty continues until the firm dissolves.
C) the member does not lose the right to participate in management.
D) the member does not lose the right to act as an agent for the firm.
Dissociation
The process by which a member's involvement in an entity, such as a partnership or limited liability company, ends.
Duty of Care
A legal obligation to avoid actions or omissions that could foreseeably harm others.
Duty of Loyalty
The duty of loyalty is a legal obligation of fiduciaries to act in the best interest of their beneficiaries or principals, avoiding conflicts of interest.
- Acquire knowledge on the roles and fiduciary obligations of members and managers in LLCs and various partnership businesses.
- Acquire knowledge about the privileges and duties of stakeholders in a corporate body, including their voting rights, distribution of earnings, and the effects of disengagement.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
A
Explanation :
When a member ceases to be associated with the business of an LLC, their duty of care regarding prior events or actions taken while they were a member continues. This means they are still responsible for their actions and decisions made during their tenure. However, their duty of loyalty, right to participate in management, and right to act as an agent for the firm do not continue after dissociation.
Learning Objectives
- Acquire knowledge on the roles and fiduciary obligations of members and managers in LLCs and various partnership businesses.
- Acquire knowledge about the privileges and duties of stakeholders in a corporate body, including their voting rights, distribution of earnings, and the effects of disengagement.