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Chapter 1: Q.4DQ (page 22)

What form of partnership allows some of the investors to limit their liability? Explain briefly.

Short Answer

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Answer

Limited liability partnership allowsthe investors to have limited liability in the partnership.

Step by step solution

01

Step 1: Meaning of limited liability partnership

Limited liability partnership is a type of partnership that allows its partners to have limited liability. This form of partnership allows benefits of partnership and company to its investors.

02

Step 3:The limited liability of investors in LLP

The liability of investors is limited in an LLP organization. The investors are only liable for the amount of money invested by them in a limited liability partnership and they cannot be personally held liable for the partnership’s liabilities.

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