In the context of the liability of owners, a true statement about a limited liability partnership (LLP) is that it Blank______.Multiple choice question.requires partners to share personal liability equally, regardless of their capital contributionsallows insurance against liability as the only protection for partners against liability risklets each partner put his or her assets in someone else's name to avoid liability riskprovides partners with an advantage to protect their personal assets from liability risk
Question
In the context of the liability of owners, a true statement about a limited liability partnership (LLP) is that it Blank______.Multiple choice question.requires partners to share personal liability equally, regardless of their capital contributionsallows insurance against liability as the only protection for partners against liability risklets each partner put his or her assets in someone else's name to avoid liability riskprovides partners with an advantage to protect their personal assets from liability risk
Solution
The correct answer is: "provides partners with an advantage to protect their personal assets from liability risk".
In a Limited Liability Partnership (LLP), each partner's personal assets are protected from the partnership's debts and liabilities. This means that if the partnership is sued or owes money, the partners' personal assets (like their homes, cars, and personal savings) cannot be used to pay off the partnership's debts. This is a major advantage of LLPs over other types of partnerships, where partners can be personally liable for the partnership's debts.
Similar Questions
In an LLP, the liability of partners is:a.Limited to their capital contributionb.Limited to their share of profitsc.Unlimited and jointd.Unlimited but several
Which of the following is correct regarding a limited liability partnership (LLP)?Multiple choice question.Each partner in an LLP is responsible for his or her own negligence and the negligence of those that he or she supervises.Each partner in an LLP pays taxes on the total income of the business.An LLP consists of a general partner and a limited partner who plays no role in the management of the business.An LLP is considered a separate legal entity in most states.
In a Blank______, all the partners assume liability for one partner's professional malpractice, but only to the extent of the partnership's assets.Multiple choice question.limited partnershiplimited liability partnershipgeneral partnershiplimited liability company
True or False. Partners within a partnership have unlimited liability.True1False
The liability of a limited partner is limited to the amount he or she has put into the partnership.Group of answer choicesTrueFalse
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