Recent changes in partnership law allow partnerships to be registered as a "limited liability partnership" or LLP.When carrying on business as a limited liability partnership,non-negligent partners stand to lose:
A)their investment in the firm.
B)all of their personal assets if a successful claim is brought against the partnership on the basis of another partner's mistake.
C)absolutely nothing.
D)all of their personal assets except those protected from seizure under bankruptcy legislation.
E)assets jointly held with a spouse.

Question

Quizplus · Accepted Answer

In a limited liability partnership (LLP), non-negligent partners are protected from losing their personal assets due to the negligence or mistakes of other partners. Their financial risk is limited to their investment in the firm.

Recent Changes in Partnership Law Allow Partnerships to Be Registered