Which of the Following Statements About LLPs Is False

question 79

Multiple Choice

Which of the following statements about LLPs is false?

• A)State legislatures created the LLP as a means of reducing the personal liability of professional partners.
• B)An innocent partner of an LLP has no liability for the professional malpractice of his partners.
• C)LLP statutes grant partners broad protection.
• D)LLP statutes hold innocent partners liable for negligence.

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to entry or exit, and perfect information among buyers and sellers.

Purification Costs

The expenditures involved in the process of removing impurities or contaminants from a substance, often related to environmental procedures or manufacturing processes.

U-Shaped AVC

The U-Shaped Average Variable Cost curve represents how the per-unit production expenses initially decrease due to increasing returns and subsequently increase after reaching a certain scale due to diminishing returns.

Perfectly Competitive

A perfectly competitive market is one with many buyers and sellers, where no single entity can influence the market price, and all products are identical.