What Is an Important Aspect of a Limited Liability Partnership

question 8

Multiple Choice

What is an important aspect of a limited liability partnership?

• A)It is the same as a limited partnership where the general partner has unlimited liability.
• B)A partner has unlimited liability arising from his or her own acts of negligence or misconduct or similar acts of any person under his or her direct supervision,but does not have unlimited liability in other matters.
• C)All partners have limited liability regarding all partnership activities.
• D)All partners have unlimited liability.

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Definitions:

RUPA

The Revised Uniform Partnership Act, which provides a regulatory framework for the operation of partnerships in the United States.

Illegality

Refers to the condition of being against the law or illegal.

Dissolving Partnership

The process of legally ending a partnership agreement, involving the distribution of assets and liabilities among the partners.

General Partnership

A business arrangement where two or more individuals agree to share in all assets, profits, and financial and legal liabilities of a venture.