Question

Which of the following is not the 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

Answer: (D)

Easy to establish than sole proprietorship

LLP stands for Limited liability partnership which refers to a company form of business where the only the partners contribute in the capital and their liability remains limited to the extent of their capital contribution in the business. The process of establishing LLP is just like a company which is very complicated.