Multiple choice

Which of the following is treated as a separate legal entity different from its members?

  1. Sole proprietorship

  2. Hindu undivided family

  3. Partnership

  4. Limited liability partnership
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

LLP has a separate legal entity, liable to the full extent of its assets. The liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or unauthorised actions of other partners and thus, allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

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