Answer:
C) to the extent of her capital contribution to the firm.
What does capital contribution mean?
- In business and partnership law, contribution may refer to a capital contribution, which is an amount of money or assets given to a business or partnership by one of the owners or partners.
- The capital contribution increases the owner or partner's equity interest in the entity.
- Capital can include cash, accounts receivable, equipment, and even physical property.
- Naturally, putting the words together, a capital contribution is a member's contribution of assets, usually cash, into the LLC.
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