Which of the following statements is true as it relates to limited liability partnerships? A. Only...
Which of the following statements is true as it relates to limited liability partnerships?
- A. Only senior partners are liable for the partnership's debts.
- B. Partners are personally liable for the acts of those under their supervision.
- C. Partners have no liability in a limited liability partnership arrangement.
- D. All partners must be AICPA members.
Homework Answers
Answer -
B. Partners are personally liable for the acts of those under supervision.
Explanation -
In case of limited liability partnership, liability of partners are limited to their acts only. Partners are not personally liable for others acts.
The benefits of LLP are limited to their own acts.
There is no law that only senior partners are liable for LLP debts. Partners not required to be AICPA members. All partners are liable but only for their own acts. So other options are incorrect.
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