ACCA Applied Skills · Corporate and Business Law (Global) · Partnerships
Which of the following is a key feature distinguishing a limited liability partnership (LLP) from an ordinary general partnership?
An LLP has separate legal personality, so it can own property and enter contracts itself, and its members are generally not personally liable for its debts. Equal capital contributions are not required, and it can hold property in its own name.
- AThe LLP is a separate legal person, and its members are generally not personally liable for its debtsCorrect
- BAll members of an LLP must contribute equal capital
- CAn LLP cannot own property in its own name
Explanation
An LLP has separate legal personality and members' liability is generally limited. Equal capital is not required, and an LLP can own property in its own name as a separate legal entity.
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