LLP Quiz

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In a limited liability partnership (LLP), each partner is not responsible or liable for another partner's misconduct or negligence. This distinguishes an LLP from a traditional partnership under the UK Partnership Act 1890, in which each partner has:

Unlimited liability

Limited liability for all partners' actions

Joint (but not several) liability (correct)

Equal liability for all partners

In an LLP, some or all partners have a form of limited liability similar to that of the shareholders of a corporation. Depending on the jurisdiction, the limited liability may extend only to the negligence or misconduct of the other partners, and the partners may be personally liable for:

Other liabilities of the firm or partners (correct)

All liabilities of the firm

Limited liabilities of the firm

Negligence of the board of directors

In an LLP, the partners have the power to manage the business directly. In contrast, corporate shareholders must:

Be personally liable for all business operations

Elect a board of directors (correct)

Have joint liability for business decisions

Have limited control over business decisions

An LLP can exhibit aspects of both partnerships and corporations due to:

Limited liabilities of the partners Signup and view all the answers

Under the UK Partnership Act 1890, in a traditional partnership, each partner has joint (but not several) liability. This means that the partners are jointly liable for:

All obligations of the partnership Signup and view all the answers

What is a partnership?

A business agreement between two or more individuals to share ownership and responsibilities Signup and view all the answers

What distinguishes a corporation from a partnership?

Corporation is owned by shareholders and has specific legal rights and liabilities Signup and view all the answers

What are the risks and benefits assumed by business owners (partners) in a partnership?

Assume all risks of running the business and share all benefits Signup and view all the answers

What distinguishes a partnership from a corporation in terms of setup and obligations?

Partnership is easier to set up and has less paperwork, legal obligations, and tax requirements Signup and view all the answers

What do partners in a partnership share?

Ownership, responsibilities, profits, and liabilities Signup and view all the answers

LLP Quiz

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Questions and Answers

In a limited liability partnership (LLP), each partner is not responsible or liable for another partner's misconduct or negligence. This distinguishes an LLP from a traditional partnership under the UK Partnership Act 1890, in which each partner has:

In an LLP, some or all partners have a form of limited liability similar to that of the shareholders of a corporation. Depending on the jurisdiction, the limited liability may extend only to the negligence or misconduct of the other partners, and the partners may be personally liable for:

In an LLP, the partners have the power to manage the business directly. In contrast, corporate shareholders must:

An LLP can exhibit aspects of both partnerships and corporations due to:

Under the UK Partnership Act 1890, in a traditional partnership, each partner has joint (but not several) liability. This means that the partners are jointly liable for:

What is a partnership?

What distinguishes a corporation from a partnership?

What are the risks and benefits assumed by business owners (partners) in a partnership?

What distinguishes a partnership from a corporation in terms of setup and obligations?

What do partners in a partnership share?

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