Which of the Following Is Generally True Regarding the Liability

question 20

Multiple Choice

Which of the following is generally true regarding the liability of members of a limited liability partnership for malpractice?

• A) Members split evenly among themselves 50% of any assessed liability for malpractice against any member with the limited liability company retaining liability for the remaining 50%.
• B) Members are not liable for their own malpractice or for the malpractice of other members because recovery for malpractice may only be obtained from assets of the limited liability partnership itself.
• C) Members are liable for their own malpractice but not for the malpractice of other members.
• D) Members are liable for their own malpractice and also for the malpractice of other members.

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Definitions:

Revenues

Revenues represent the total income generated from the sale of goods or services before any expenses are subtracted.

Product Lines

Groups of related products offered by a business, typically having similar uses or characteristics.

Profit Centers

Refers to distinct parts of a business that directly contribute to the company's profit through their operations and performance assessment.

Direct Expenses

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and labor.