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faust18 [17]
3 years ago
9

Zack, Gavin and Breana were college friends who decided to go into business together as a party equipment rental service. The th

ree budding entrepreneurs formed as equal owners a Limited Liability Company (LLC) named "Parties R Us." The written operating agreement gave only Zack the authority to manage the business, hire and fire employees, and purchase equipment. Zach contributed to the LLC his knowledge in the party business (his family had owned a similar company), and Gavin and Breana each contributed $100,000 capital. Over the next year, Zack ran the business, but he did not consult with Gavin and Breana, and no meetings were held. When Gavin and Breana asked what was going on with the company, Zack said he was too busy to talk about it. At the end of the first year, despite Zack's best efforts, the LLC's cash was depleted and its liabilities significantly exceeded its assets. To make matters worse, a defective parties r us tent had collapsed Into a wedding group, causing serious injuries. One of the wedding guests, Margaret, sued the LLC and received a $500,000 judgement against them. Because the LLC cannot pay Margaret, is it likely that Zack, Gavin, and Breana will be held personally liable for the judgment?a. yes, because the LLC was the owners' "alter ego."b. yes, because the LLC was undercapitalized.c. no, because the LLC was an entity independent from its owners.d. yes, because they didn't follow LLC formalities, such as holding meetings.
Business
1 answer:
damaskus [11]3 years ago
8 0

Answer:

im not sure what the answer wold be but you woulkd if you actually did your own work but its b

Explanation:

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Give a real life example of mitigating a risk, avoiding a risk, transferring a risk and retaining a risk.
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Explanation:

Let us understand the terms with examples:

Avoiding a risk: A risk which is pre-identified and which would create huge loss for the ongoing task can be avoided.

For example:

If there is a deadline for a project and there are only few more days to complete, then planning a training program on soft skill will be a riskier one. So training program can be planned sometimes later, thus avoiding risk.

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Retaining a risk: You can retain the risk if the impact is negligible. Absence of a software developer for 10 days. So the Project manager need not worry about finding an alternate person for that 10 days alone, which might lead to less understanding of flow and may raise more errors if multiple resource work on the content.

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Kim went to ling's market to pick up a few items for dinner. it was a stormy day, and the wind had blown water through the marke
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Investments created to invest many people's money in many different firms are called:
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8 0
3 years ago
Read 2 more answers
a. MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming year's earnings are expected to be $2 per share, at wha
xz_007 [3.2K]

Answer:

Return on equity(r) = 0.16

Plowback ratio(b) = 50 = 0.5

Earnings per share(EPS) = $2

D1 = 50% x $2 = $1

Cost of equity(Ke) = 0.12

Growth rate(g) = b x r

                        = 0.5 x 0.16

                        = 0.08 = 8%

Current market price(Po) = D1/Po + g

                                         = $1/0.12 - 0.08

                                        = $25

Market price in 3 years = Po(1+g)n

= $25(1+0.08)3

= $25(1.08)3

= $31.49

Explanation:

In this case, we need to calculate growth rate by multiplying the plowback ratio by return on equity. Then, we will calculate the current market price as shown above. Thereafter, we will subject the current market price to a 3-year growth rate to calculate the market price in 3 year's time

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3 years ago
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