Which of the Following Statements Is True of Limited Liability

question 10

Multiple Choice

Which of the following statements is true of limited liability partnerships (LLP) ?

• A) All the partners lose only their capital contribution in the LLP if the LLP fails.
• B) The limited partners are personally liable for the debts and obligations of the LLP.
• C) A limited partner whose negligent or intentional conduct causes injury cannot be held personally liable for his or her conduct.
• D) If an LLP fails, the LLP's remaining assets are sold to help the largest stakeholder recover his or her investments in the LLP.

Grasp the concept of private placements and their exemption from registration.

Understand the legal consequences, including potential liability, of non-compliance with securities laws.

Recognize the scope and limitation of securities law in regulating insider trading and corporate governance.

Grasp the enforcement mechanisms and penalties available to the SEC for violations of securities laws.

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Definitions:

Competence

Refers to the ability of an individual or organization to effectively perform or carry out a specific task or role.

Confidence

The belief in one's abilities or qualities and the assurance in the trustworthiness or success of something or someone.

Self-Efficacy

A person’s belief that she or he is capable of performing a task.

Motivation

The process by which a person’s desires and values influence his or her behavior.