How does a limited liability partnership (LLP) differ from a general partnership?
Answer and explanation
Correct answer: B. An LLP is a body corporate with limited liability for members
- Step 1: LLPs are governed by the Limited Liability Partnerships Act 2000.
- Step 2: They are separate legal persons, and members' liability is limited to what they have agreed to contribute.
Answer
An LLP is a body corporate with limited liability for members.
Why not the others: That describes a general partnership. An LLP has members, not shareholders. An LLP must be registered at Companies House.
Practise more Company and insolvency law.
Free questions with an explanation for every one, and full timed ICAEW ACA Certificate Level mock tests.
More Company and insolvency law questions
- What was the principal decision in Salomon v A Salomon & Co Ltd?
- In which circumstance is a court most likely to lift the veil of incorporation?
- Which of the following must be delivered to the Registrar of Companies to register a private company limited by shares?
- What is the effect of a company's articles of association under section 33 of the Companies Act 2006?
- A promoter signs a contract in the name of 'ABC Ltd', which has not yet been incorporated. After incorporation, ABC Ltd does not adopt the c…
- A company has £1 nominal value shares. The directors propose to issue new shares at 90p each. What is the legal position?