Question

In a limited liability partnership, each partner's risk of losing personal assets is:

A. Unlimited.
B. Limited to losses that result from his/her own acts and omissions and the acts and omissions of those who work under his/her supervision.
C. Determined entirely by the maximum loss provision established by the articles of co-partnership.
D. Nonexistent.

Answer 1

B - Limited to losses that result from his/her own acts and omissions and the acts and omissions of those who work under his/her supervision.

Step-by-step explanation:

In a limited liability partnership, each partner's risk of losing personal assets is limited to the share capital he has invested. The limited liability partner is not liable for other partners deeds and losses incurred due to their negligence. His liability is limited to the share capital / equity he has invested in the business.

Answer 2

Answer: Option B

Explanation: A Limited Liability Partnership (LLP) refers to a partnership arrangement in which some or even all associates bore limited liability. Thus, it might display partnership and corporate components. Every member in such a partnership is not accountable or liable for the wrongdoing or incompetence of another member.

One or more of the participants in such a partnership have a sort of limited liability close with that of a company's stakeholders. Those partners have all the ability to personally run the company as opposed to company shareholders.

Thus, from the above we can conclude that the correct option is B.