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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:
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:
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:
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:
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:
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 is a partnership?
What distinguishes a corporation from a partnership?
What distinguishes a corporation from a partnership?
What are the risks and benefits assumed by business owners (partners) in 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 distinguishes a partnership from a corporation in terms of setup and obligations?
What do partners in a partnership share?
What do partners in a partnership share?
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