How does an LLC (limited liability company) acquire capital? What are the obligations involved in a member's contribution of capital?
What will be an ideal response?
A member's capital contribution to an LLC may be in the form of money, personal property, real property, other tangible property, intangible property, services performed, contracts for services to be performed, promissory notes, or other agreements to contribute cash or property. A member's obligation to contribute capital is not excused by the member's death, disability, or other inability to perform. If a member cannot make the required contribution of property or services, he or she is obligated to contribute money equal to the value of the promised contribution. The LLC or any creditor who extended credit to the LLC in reliance on the promised contribution may enforce the promised obligation.
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Which of the following is not included in computing EBT (earnings before taxes)?
A) Marketing expenses B) Depreciation expense C) Cost of goods sold D) Dividends
In corporate accounting, a distinction is made between paid-in or invested capital and capital resulting from retained earnings
a. True b. False Indicate whether the statement is true or false