ExpertMedium2 marksMultiple Choice
ACCA · Question 15 · Corporate and Business Law
Which TWO of the following are characteristics of a Limited Liability Partnership (LLP)?
Which TWO of the following are characteristics of a Limited Liability Partnership (LLP)?
Answer options:
A.
It has separate legal personality.
B.
Members have unlimited liability for the LLP's debts.
C.
It must file accounts with Companies House.
D.
It cannot create floating charges over its assets.
How to approach this question
Identify the features that make an LLP a hybrid between a partnership and a company.
Full Answer
An LLP (created under the LLP Act 2000) is a body corporate with separate legal personality. This grants members limited liability, but in return, the LLP must register and file annual accounts with Companies House.
Common mistakes
Assuming LLPs are exempt from public disclosure rules like ordinary partnerships.
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