A partnership designed to protect innocent partners from malpractice or negligence claims resulting from acts of another partner is a:
A) Partnership.
B) Limited partnership.
C) Limited liability partnership.
D) General partnership.
E) Limited liability company.

Question

Quizplus · Accepted Answer

A limited liability partnership (LLP) is designed to protect innocent partners from malpractice or negligence claims resulting from acts of another partner. In an LLP, each partner has limited liability for the partnership's debts and obligations, as well as protection from the actions of other partners. This is a popular business structure for professional service firms, such as law firms and accounting firms, where liability risks are higher.

A Partnership Designed to Protect Innocent Partners from Malpractice or Negligence