Which of the following statements is True as it relates to limited liability partnerships?
A)Only senior partners are liable for the partnerships debts.
B)Partners have no liability in a limited liability partnership arrangement.
C)Partners are personally liable for the acts of those under their supervision.
D)All partners must be AICPA members.

Question

Quizplus · Accepted Answer

Partners in a limited liability partnership (LLP) have limited personal liability for the debts and liabilities of the partnership, but they can still be personally liable for their own actions as well as the actions of those who are under their direct supervision. This means that if a partner directly supervises an employee who commits a negligent act that results in harm to others, the partner could be held personally liable for any resulting damages. Option A is incorrect because all partners, not just senior partners, can be held liable for the partnership's debts. Option B is also incorrect because partners do have some level of personal liability in an LLP arrangement. Option D is not true as there is no requirement that all partners in an LLP be AICPA members.

Which of the Following Statements Is True as It Relates