business law

. John, Lesa, and Trevor form a limited liability company. John contributes 60% of the capital, and Lesa and Trevor each contribute 20%. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60% of the profits, in accordance with his contribution. Lesa and Trevor, however, assume that the profits will be divided equally. A dispute over the profits arises, and ultimately a court has to decide the issue. What law will the court apply? In most states, what will result? How could this dispute have been avoided in the first place? Assess fully.

  1. 👍 0
  2. 👎 0
  3. 👁 76
  1. Limited Liability Companies. John, Lesa, and Trevor form a limited liability company. John contributes 60% of the capital, and Lesa and Trevor each contribute 20%. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60% of the profits, in accordance with his contribution. Lesa and Trevor, however, assume that the profits will be divided equally. A dispute over the profits arises, and ultimately a court has to decide the issue. What law will the court apply? In most states, what will result? How could this dispute have been avoided in the first place? Assess fully.

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Business Law

    Limited Liability Companies. John, Lesa, and Trevor form a limited liability company. John contributes 60% of the capital, and Lesa and Trevor each contribute 20%. Nothing is decided about how profits will be divided. John assumes

    asked by Jamie on April 12, 2010
  2. Bus Studies

    What is limited liability company, how do they get their capital?

    asked by Tosin on April 18, 2008
  3. Psychology

    Do you think John forgets the time of his appointments? Perhaps he is always late because it makes him feel powerful or, maybe he is just disorganized?" These questions are being asked in order to 
 A. determine whether John's

    asked by Mat on July 26, 2013
  4. English

    In passive form object becomes a subject.Is it right? So why is John is the subject in"John was chosen captain of the team".Isn't John is a object?I don't understand.Please explain it

    asked by Bayarbold on June 25, 2011
  5. business law

    Hi can you tell me if i am opening a videogame company. What will be my LLC, reason for selecting that entity. Go over the pros and cons for a business to select an LLC over the other possible business entity types. Then ask, what

    asked by Ronnie on May 8, 2007
  6. PHYSICS

    pete and john play a game of tug f war on a frictionless icy curface. pete weighs 539 N and john weights 392 N. during the course of the game, john accelerates toward pete at a rate of 3 m/s^2 a)what's the magnitude of the force

    asked by samir on January 23, 2010
  7. History

    Which accurately describes life events of explorer John Smith? john smith was the founder of Quebec city and known as the father of Canada john smith was a Portuguese explorer and the first to see Brazil in 1500 john smith managed

    asked by malia on October 26, 2017
  8. Microeconomics

    If John's preferences are given by U(c,D)=log(c)+D where c is consumption and D is total donations and a wealthy individual sets up a matching fund campaign where John's total donation (D) is given by D=kd where k is the expansion

    asked by Shayna on November 4, 2012
  9. math

    John and Smith went to a stationery shop. John bought 6 pens, 4 pencils and 3 erasers. Smith bought 3 pens, 8 pencils and 6 erasers and spent 20% more than John. What percentage money did John spend on pens? How can I form an

    asked by rachel on December 8, 2014
  10. FINANCIAL MANAGEMENT

    11-16 NPV and IRR John’s Publishing Company, a new service that writes term papers for college students, provides 11-page term papers from a list of more than 500 topics. Each paper will cost $7.50 and is written by a graduate

    asked by NAY on January 14, 2017

More Similar Questions