Practice Quiz

Paralegal Exam Prep

Category - Miscellaneous

Start a Study Session Sign up for Question of the Day
What is a major distinguishing feature of a limited liability partnership (LLP)?
  1. An LLP allows the members of the LLP to take an active role in the business of the partnership, without exposing them to personal liability for others' acts except to the extent of their investment in the LLP.
  2. An LLP allows the partnership to have unlimited partners without extending liability to all of the partners.
  3. An LLP statutorily limits personal liability to $100,000 per partner.
  4. An LLP does not require a partnership agreement.
  5. An LLP allows the members of the LLP to take an active role in the business of the partnership, while limiting the personal liability to $100,000.
Explanation
Answer: A. An LLP allows the members of the LLP to take an active role in the business of the partnership, without exposing them to personal liability for others' acts except to the extent of their investment in the LLP. Each state has its own requirements for setting up an LLP. Generally, there is a requirement to register the partnership with the state.
Previous Next
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz