Which of the following is true of a limited liability partnership?
A) The most common type of industry for this type of organization is agriculture, or family farms.
B) States that recognize limited liability partnerships sometimes limit them to organizations that provide a professional service for which each partner is licensed.
C) In a limited liability partnership, partners do not report their profits and losses on their personal tax returns.
D) One of the disadvantages of a limited liability partnership is that it does not protect individual partners from personal liability for the negligent acts of other partners.

Question

Quizplus · Accepted Answer

Limited liability partnerships are often limited to organizations that provide a professional service for which each partner is licensed. Option A is incorrect because limited liability partnerships are not limited to any specific industry. Option C is incorrect because partners in a limited liability partnership do report their profits and losses on their personal tax returns. Option D is incorrect because a limited liability partnership does protect individual partners from personal liability for the negligent acts of other partners.

Which of the Following Is True of a Limited Liability