LLP Quiz

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In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence, distinguishing it from a traditional partnership under the UK Partnership Act 1890, where each partner has joint (but not several) liability. This is an example of:

Corporate liability in an LLP

Limited liability in an LLP (correct)

Shared liability in an LLP

Unlimited liability in an LLP

The limited liability in an LLP may extend only to the negligence or misconduct of the other partners, and the partners may be personally liable for:

Shareholder disputes

Employee salaries

Tax liabilities

Other liabilities of the firm or partners (correct)

In a traditional partnership under the UK Partnership Act 1890, each partner has joint (but not several) liability. This means that partners are:

Collectively liable for all partnership debts (correct)

Liable only for their own actions

Not liable for any partnership debts

Individually liable for all partnership debts

In an LLP, the partners have the power to manage the business directly. This differs from corporate shareholders who:

Must elect a board of directors Signup and view all the answers

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

Limited liabilities of some or all partners Signup and view all the answers

In an LLP, what distinguishes it from a traditional partnership under the UK Partnership Act 1890 in terms of partner liability?

In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence, whereas in a traditional partnership under the UK Partnership Act 1890, each partner has joint (but not several) liability. Signup and view all the answers

What is the primary characteristic that allows an LLP to exhibit aspects of both partnerships and corporations?

The limited liability of some or all partners, which is similar to that of the shareholders of a corporation. Signup and view all the answers

What power do partners in an LLP have in contrast to corporate shareholders?

Partners in an LLP have the power to manage the business directly, while corporate shareholders must elect a board of directors under the laws of various statutes. Signup and view all the answers

What is the extent of limited liability in an LLP and to what does it typically apply?

The limited liability in an LLP 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 depending on the jurisdiction. Signup and view all the answers

How does the liability of partners in an LLP differ from that of corporate shareholders?

In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence, whereas corporate shareholders have limited liability primarily invested in the shares they hold. Signup and view all the answers

LLP Quiz

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Questions and Answers

In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence, distinguishing it from a traditional partnership under the UK Partnership Act 1890, where each partner has joint (but not several) liability. This is an example of:

The limited liability in an LLP may extend only to the negligence or misconduct of the other partners, and the partners may be personally liable for:

In a traditional partnership under the UK Partnership Act 1890, each partner has joint (but not several) liability. This means that partners are:

In an LLP, the partners have the power to manage the business directly. This differs from corporate shareholders who:

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

In an LLP, what distinguishes it from a traditional partnership under the UK Partnership Act 1890 in terms of partner liability?

What is the primary characteristic that allows an LLP to exhibit aspects of both partnerships and corporations?

What power do partners in an LLP have in contrast to corporate shareholders?

What is the extent of limited liability in an LLP and to what does it typically apply?

How does the liability of partners in an LLP differ from that of corporate shareholders?

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