Which of the following is true about asset distribution in an LLP?
A)If the LLP has been profitable,each partner will receive the net amount in his capital account.
B)The partners have liability for partnership obligations beyond the firms' assets.
C)An LLP partner has to contribute an amount equal to the negative balance in his account to pay creditors.
D)The creditors must sue the partner to force the partner to pay the debt.

Question

Quizplus · Accepted Answer

If the LLP has been profitable,each partner will receive the net amount in her capital account.If creditors' claims exceed the LLP's assets,however,an LLP partner is not ordinarily required to contribute an amount equal to the negative balance in her account,and the creditors may not sue the partner to force the partner to pay the debt.

Which of the Following Is True About Asset Distribution in an LLP