What is the primary purpose of the Limited Liability Partnership Act, 2008 of India?a.To protect partners from being held liable for debts and obligationsb.To provide legal personality to LLPsc.To establish property ownership for LLPsd.To establish property ownership for LLPsClear my choice
Question
What is the primary purpose of the Limited Liability Partnership Act, 2008 of India?a.To protect partners from being held liable for debts and obligationsb.To provide legal personality to LLPsc.To establish property ownership for LLPsd.To establish property ownership for LLPsClear my choice
Solution
The primary purpose of the Limited Liability Partnership Act, 2008 of India is to provide legal personality to LLPs. This means that the LLP becomes a unique entity, separate from its partners. It can own property, enter into contracts, and sue or be sued in its own name. This Act also protects partners from being held personally liable for the debts and obligations of the LLP. Therefore, the partners' personal assets are protected, and they are only liable to the extent of their contribution to the LLP.
Similar Questions
What is the main advantage of a limited liability partnership (LLP)?a.Unlimited liability for partnersb.Separate legal entity statusc.Ease of formationd.No legal liability for partners
The Limited Liability Partnership Act, 2008 of India regulates the formation and dissolution of LLPs. This statement is ______.a.TRUEb.FALSEc.Partially Trued.Incomplete
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
Limited liability is a benefit for the owners of: Group of answer choicessole proprietorships and partnershipspartnershipscompanies/corporationsole proprietorships
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
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