Question

Which of the following is not characteristic of LLP?

• A. A legal entity having perpetual succession, separate from its partners.
• B. The mutual rights and duties of partners of an LLP inter se and those of the LLP and its partners shall be governed by an agreement between partners
• C. Each partner is an equal member in a LLP company.
• D. Easy to establish than sole proprietorship.

Answer 1

The correct option is D Easy to establish than sole proprietorship.

LLP is a corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The following are the characteristic of LLP:

1. A legal entity having perpetual succession, separate from its partners.

2. Each partner is an equal member of a LLP company, etc.

But the on is fourth is not correct because a sole proprietorship is easy to establish in comparison to LLP.

Thus the correct answer is D.