Which of the Following Statements Is True of Limited Liability

question 18

Multiple Choice

Which of the following statements is true of limited liability companies (LLPs) ?

• A) The partners are not required to file an LLP form with the state.
• B) The partners maintain an adequate amount of professional liability insurance.
• C) They are relatively difficult to organize around an existing partnership.
• D) They necessitate that all existing partnerships be dissolved.

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Definitions:

Collectivity

A substantial number of people who join together on the basis of loosely defined norms.

Sociologists

Experts or scientists who study societies, examining the structures, systems, and dynamics of human interaction and social behavior.

Equilibrium Theory

The assertion that a system’s natural state is one of balance and harmony.

Social Change

The transformation over time of cultural norms, values, societal structures, and behaviors, often driven by conflict, innovation, and geopolitical shifts.