Question

Which of the following is/ are advantage of LLP?

• A. Restrictions as to maximum number of partners
• B. Partners are not liable for act of other partners
• C. LLP and its partners are not distinct from each other
• D. All of above

Answer 1

Answer: (B)

LLP stands for Limited liability partnership which refers to a company form of business where the only the partners contribute in the capital and their liability remains limited to the extent of their capital contribution in the business. In this form of partnership, the partners are not liable for the acts of other partners.