Question: Case Study John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20

Case Study

John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent 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 will be the result?

How could this dispute have been avoided in the first place?

Plagiarism IS NOT ALLOWED, USE YOUR WORDS DONT COPY AND PASTE. *(Pleas make it as a text not handwriting) if there any reference add it

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Case Study John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20 percent. Nothing is decided about how profits...

FACTS- John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20 percent. Nothing is decided about how profits will...

John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20 percent. Nothing is decided about how profits will be...

1. John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20 percent. Nothing is decided about how profits will be...

oo Sprint LTE 7:44 PM Back Resources MGT 2210001 Hypotheticals due by 8:00 a.m. on December 6, 2017. Provide a full discussion and answer to the following. Cite your authority. 1. John, Lesa and...

John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each contribute 20 percent. Nothing is decided about how profits will be...

John, Lesa, and Tabir form a limited liability company. John contributes 60% of the capital, and Lesa and Tabir each contribute 2%. Nothing is decided about how profits will be divided. John assumes...

41-1. Giovanni, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each contribute 20 percent. Nothing is decided about how profits will...

John, Lisa, and Trevor form a limited liability company (LLC).John contributes 50 percent of the capital, Lisa and Trevor each contribute 20 percent.Nothing is decided about how profits will be...

If the time duration of a general loading, say a shock load, is very small, Duhamel integral cannot be used to evaluate the response. True/ False

Corporate executives for a national company are considering implementing new software that will make their business run more efficiently, thereby saving the company a substantial amount of money in...

The goal of the SEC's Regulation D is to make it easier for the SEC to detect companies whose stock would be bad investments for comamers to minimire the experve and time reouired to raise eouty...

Determine the major differences between U.S. GAAP and IFRS disclosure reporting requirements related to each separately reportable operating segment. Next, give your opinion as to whether either U.S....