Nastasia is 50% owner in a manufacturing company that runs as an LLP. She invested $25,000 when the business started and has received no money from the business since then. The company just lost a $1,000,000 patent infringement lawsuit and will have to shut down. What is Nastasia's personal loss on this business?
A) $0
B) $25,000
C) $1,000,000
D) $1,025,000

Question

Quizplus · Accepted Answer

Nastasia's personal loss is limited to her initial investment of $25,000 because, in a Limited Liability Partnership (LLP), partners are not personally liable for the business debts beyond their investment in the company.

Nastasia Is 50% Owner in a Manufacturing Company That Runs