Dylan Chase is a partner in a CPA practice.One of Dylan's partners sometimes takes a very aggressive position when auditing clients.Which of the following business types would protect Dylan's personal assets from malpractice liability for his partner's aggressive auditing tactics?
A) Limited liability partnership
B) Traditional partnership
C) Not-for-profit
D) Proprietorship

Question

Quizplus · Accepted Answer

A limited liability partnership (LLP) provides protection for each partner's personal assets from malpractice liability arising from their partner's actions or decisions. This means that if Dylan's partner is found liable for malpractice, only the assets of the partnership (not Dylan's personal assets) would be at risk. Traditional partnerships and proprietorships do not offer this type of protection. Not-for-profit status is unrelated to liability protection.

Dylan Chase Is a Partner in a CPA Practice