Final answer:
A member's distributional interest in an LLC is recognized as personal property that can be transferred wholly or in part. This represents their right to financial and other assets distributed by the company.
Step-by-step explanation:
A member's distributional interest in an LLC is personal property and may be transferred in whole or in part. A distributional interest refers to the member's right to receive distributions from the company, which can be financial or other assets that are distributed to members of the LLC.
In contrast to shares in a corporation, distributional interests in an LLC do not normally include voting rights or authority in management unless specifically laid out in the LLC's operating agreement. The transfer of a distributional interest does not necessarily mean that the transferee receives the transferor's rights to participate in the management and affairs of the LLC, a concept similar to a treasury bond where the bond itself can be transferred but the rights associated with it, such as voting in government, do not transfer.