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:

Segment Data

Financial information broken down into smaller units, such as product lines or geographical markets, within an organization.

Subsidiary Ledger

A subsidiary ledger is a detailed ledger that contains account information related to a specific subsidiary account, which is then summarized in a general ledger.

General Ledger

A full archive of all monetary dealings across the duration of a company's history.

Posting References

Codes or numbers in accounting that link journal entries to specific accounts in the ledger, aiding in traceability and audit trails.