Podcast
Questions and Answers
What distinguishes a limited liability partnership (LLP) from a traditional partnership under the UK Partnership Act 1890?
What distinguishes a limited liability partnership (LLP) from a traditional partnership under the UK Partnership Act 1890?
- Each partner has no liability
- Each partner has joint and several liability
- Each partner is responsible for another partner's misconduct or negligence
- Each partner has limited liability similar to that of corporate shareholders (correct)
What distinguishes the power structure in an LLP from that of a corporation?
What distinguishes the power structure in an LLP from that of a corporation?
- Partners must elect a board of directors
- Partners have no power to manage the business directly
- Partners have the power to manage the business directly (correct)
- Partners are responsible for the negligence or misconduct of other partners
What is the tax liability level in an LLP compared to a corporation?
What is the tax liability level in an LLP compared to a corporation?
- No tax liability
- Equal tax liability
- Higher tax liability
- Lower tax liability (correct)
In an LLP, what are partners personally liable for?
In an LLP, what are partners personally liable for?
How does the liability of partners in an LLP differ from that of corporate shareholders?
How does the liability of partners in an LLP differ from that of corporate shareholders?
Under the UK Partnership Act 1890, what type of liability do partners have in a traditional partnership?
Under the UK Partnership Act 1890, what type of liability do partners have in a traditional partnership?
What is one reason professional-services firms find the partnership structure attractive?
What is one reason professional-services firms find the partnership structure attractive?
What effect does limited liability have on the opportunities for new business growth?
What effect does limited liability have on the opportunities for new business growth?
What negative consequences can be associated with limited liability for stakeholders in some jurisdictions and industries?
What negative consequences can be associated with limited liability for stakeholders in some jurisdictions and industries?
Which action did some large accountancy firms in the UK take to relieve themselves of owing the 'duty of care' to individuals and clients adversely affected by audit failures?
Which action did some large accountancy firms in the UK take to relieve themselves of owing the 'duty of care' to individuals and clients adversely affected by audit failures?
What did PricewaterhouseCoopers and Ernst & Young hire the legislature of Jersey to enact?
What did PricewaterhouseCoopers and Ernst & Young hire the legislature of Jersey to enact?
According to Delaware Supreme Court Chief Justice Myron Steele, how should courts assess cases of improper corporate governance for limited liability entities?
According to Delaware Supreme Court Chief Justice Myron Steele, how should courts assess cases of improper corporate governance for limited liability entities?
How are limited liability partnerships distinct from limited partnerships in some countries?
How are limited liability partnerships distinct from limited partnerships in some countries?
Which type of businesses is the LLP more suited for in countries where all investors wish to take an active role in management?
Which type of businesses is the LLP more suited for in countries where all investors wish to take an active role in management?
In what way did some accountancy firms attempt to advance their interests according to the text?
In what way did some accountancy firms attempt to advance their interests according to the text?
Which entity suggested that limited liability entities should not be held to common law standards of fiduciary principles?
Which entity suggested that limited liability entities should not be held to common law standards of fiduciary principles?
Flashcards
LLP vs. Traditional Partnership (UK)
LLP vs. Traditional Partnership (UK)
Each partner has limited liability similar to that of corporate shareholders.
LLP Power Structure
LLP Power Structure
Partners have the power to manage the business directly.
LLP Tax Liability
LLP Tax Liability
Lower tax liability.
LLP Partner Liability
LLP Partner Liability
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Partner vs. Shareholder Liability
Partner vs. Shareholder Liability
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Traditional Partnership Liability (UK)
Traditional Partnership Liability (UK)
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Partnership Structure Attractiveness
Partnership Structure Attractiveness
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Limited Liability Effects
Limited Liability Effects
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Negative Limited Liability Consequences
Negative Limited Liability Consequences
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Accountancy Firms' Action
Accountancy Firms' Action
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PricewaterhouseCoopers and Ernst & Young Action
PricewaterhouseCoopers and Ernst & Young Action
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Assessing Corporate Governance
Assessing Corporate Governance
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LLP vs. Limited Partnerships
LLP vs. Limited Partnerships
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LLP Suitability
LLP Suitability
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Account Firm Interests
Account Firm Interests
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Suggested Fiduciary Standards
Suggested Fiduciary Standards
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