Which of the following is a drawback of limited liability partnerships (LLPs)?
A) No state offers "fullshield" liability protection for the partners of LLPs.
B) There is a huge distinction between limited and general partners in LLPs.
C) LLPs allow only 20% of its partners to be general partners.
D) Some states only allow specific types of professional businesses to form LLPs.

Question

Which of the following is a drawback of limited liability partnerships (LLPs)?
A) No state offers "full­shield" liability protection for the partners of LLPs.
B) There is a huge distinction between limited and general partners in LLPs.
C) LLPs allow only 20% of its partners to be general partners.
D) Some states only allow specific types of professional businesses to form LLPs.

Quizplus · Accepted Answer

Some states have restrictions on which types of professional businesses can form LLPs, limiting the options for certain industries. This is a drawback for those businesses that are not eligible to form an LLP in their state. The other choices are not accurate drawbacks of LLPs.

Which of the Following Is a Drawback of Limited Liability