Asked by Keijenea labostrie on Apr 25, 2024
Verified
In an LLP that is continuing business after dissociation:
A) a dissociated partner has high risk of continuing liability for contracts.
B) a dissociated partner has less risk of continuing liability for torts occurring before or after the partner leaves the LLP.
C) the partner's liability is limited beyond the LLP's assets.
D) the buyout payment made to a dissociated LLP partner will impair the ability of the LLP to pay its creditors.
Dissociated Partner
A partner who has withdrawn from a partnership, thereby ending his or her involvement with the business.
Liability
The legal responsibility or obligation to compensate for harm caused, debts owed, or for fulfilling specific duties.
LLP
Limited Liability Partnership, a legal structure for a business where partners' liabilities are limited to their investment in the partnership.
- Acquire knowledge on the principles overseeing the accountability of separated partners for obligations undertaken while being associates.
Verified Answer
FA
Florieann Agpoon8 days ago
Final Answer :
B
Explanation :
In an LLP,a dissociated partner has less risk of continuing liability for contracts and torts occurring before or after the partner leaves the LLP,since the partner's liability is limited to the LLP's assets.
Learning Objectives
- Acquire knowledge on the principles overseeing the accountability of separated partners for obligations undertaken while being associates.