Identify a True Statement About a Limited Liability Partnership (LLP)

question 70

Multiple Choice

Identify a true statement about a limited liability partnership (LLP) .

• A) A general partner of a limited liability partnership is responsible for the negligence and irresponsibility of limited partners.
• B) A limited partner of a limited liability partnership is responsible for the general management of the partnership business.
• C) A general partner of a limited liability partnership is liable to pay tax on all the partnership income.
• D) A general partner of a limited liability partnership is personally liable for all business debts.
• E) A limited partner responsible for the negligence and irresponsibility of general partners.

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Definitions:

Assignor

The person who assigns contract rights.

Obligor

The party in a contractual agreement who is bound to provide a payment or performance to the other party, known as the obligee.

Third Party Beneficiary

One for whose benefit a promise is made in a contract but who is not a party to the contract.

Contractual Duty

An obligation created by a contract that requires a party to act or refrain from acting in a certain way.