Fay is a member of Garden Groves LLC. Like other members of limited liability companies, Fay's liability for Garden Groves's obligations resembles the liability ofa. a participant in a joint venture. b. an owner of a sole proprietorship. c. a partner of a partnership. d. a shareholder of a corporation

Question

Maximilian Barton

Business

9 January, 16:08

Fay is a member of Garden Groves LLC. Like other members of limited liability companies, Fay's liability for Garden Groves's obligations resembles the liability ofa. a participant in a joint venture. b. an owner of a sole proprietorship. c. a partner of a partnership. d. a shareholder of a corporation

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Nancy Simon · Answer 1

a shareholder of a corporation

Explanation:

LLC stands for limited liability company. Members of an LLC have limited liability to the debts of the company. Golden gloves LLC is a legal and separate entity from its owners or shareholders. It is entitled it its assets and well as liabilities. If Golden gloves LLC is being liquidated, and its assets are not sufficient to pay all the creditors, the shareholders' personal properties cannot be used to pay off the debts.

Members of Golden gloves have similar liability responsibilities like shareholders of a corporation. The stakeholders of a corporation's liabilities are limited to the extent of their capital contribution. In other words, they have limited liabilities to the debts of the corporation.