Which of the Following Is False Regarding Limited Liability Partnerships

question 9

Multiple Choice

Which of the following is false regarding limited liability partnerships in Japan?

• A) The limited liability partnership has been recognized in Japan since the 1950s.
• B) Japan's limited liability partnership law limits the liability of its members by their capital contribution.
• C) In regard to profits, the Japan's limited liability partnership law requires that the members manage the business and negotiate among each other to determine how profits and losses should be distributed among individual members.
• D) When members are establishing the rules of the limited liability partnership, Japan requires either the agreement of all members or a majority of at least two-thirds of the members.
• E) Japan's limited liability partnership law puts restrictions on the distribution of partnership assets.

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds a company's costs, commonly used to assess profitability.

Projected Addition

An estimate or forecast of the future increase in a specific metric such as revenue, profits, or assets.

External Financing

Funding obtained from outside of a company, rather than from its own earnings, to support its operations or growth. This can come from debt, equity, or other financial instruments.