Multiple choice

What is the meaning of the term limited liability partnership?

  1. Limited scope of partnership

  2. Unlimited liability of a partner

  3. Limited liability of some partners

  4. Limited number of partners

  5. Unlimited number of partners
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C Correct answer
Explanation

A limited liability partnership is a partnership in which some or all partners have limited liabilities. A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnership. In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. In an LLP, some partners have a form of limiled liability similar to that of the shareholders of a corporation.

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