Which of the Following Statements Regarding Lawsuits and Limited Liability

question 14

Multiple Choice

Which of the following statements regarding lawsuits and limited liability partnerships is false?

• A)Only the LLP is liable on a contractual obligation.
• B)Only the LLP may be sued for a contractual obligation.
• C)The LLP and the partner who committed the tort are liable.
• D)Even LLP members who had no role in the commission of a tort have liability.

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Definitions:

Premium Expense

The cost associated with purchasing an insurance policy or other similar financial products.

Plastic Doll

A plastic doll is a toy modeled in human or humanoid form, made primarily or entirely from plastic materials, intended for children's play.

Estimated Liability

Estimated Liability refers to a potential financial obligation that can be reasonably estimated but its exact value or timing is uncertain.

Warranty Expense

Costs incurred by a company to repair, replace, or compensate for faulty products during the warranty period.