What is an important aspect of a limited liability partnership?
A)It is the same as a limited partnership where the general partner has unlimited liability.
B)A partner has unlimited liability arising from his or her own acts of negligence or misconduct or similar acts of any person under his or her direct supervision,but does not have unlimited liability in other matters.
C)All partners have limited liability regarding all partnership activities.
D)All partners have unlimited liability.

Question

Quizplus · Accepted Answer

The important aspect of a limited liability partnership is that partners have limited liability regarding all partnership activities, except for their own acts of negligence or misconduct, or those of any person under their direct supervision. This means that partners will not be personally liable for the debts and obligations of the partnership, except in cases where their own actions or oversight resulted in harm. Therefore, option B is correct. The other options are incorrect as they either state that partners have unlimited liability (option D) or do not provide the full explanation of the extent of limited liability (option A and C).

What Is an Important Aspect of a Limited Liability Partnership