Asked by Rosario Martinez on Jun 26, 2024
Verified
A ___ limits the liability of one partner for the negligence of another partner.
A) professional partnership
B) general partnership
C) limited partnership
D) unlimited partnership
E) limited liability partnership
Limited Liability Partnership
A type of business partnership where some or all partners have limited liabilities, meaning they are not personally responsible for the debts of the business.
Professional Partnership
A business structure where two or more professionals collaborate, sharing responsibilities, profits, and risks, typically in fields requiring a high level of training or expertise.
Negligence
The failure to take proper care in doing something, leading to damage or injury to others.
- Recognize the various types of business ownership and understand the legal consequences associated with each form.
Verified Answer
AF
alicia floresJun 27, 2024
Final Answer :
E
Explanation :
A limited liability partnership (LLP) is a type of partnership that limits the liability of one partner for the negligence or wrongdoing of another partner. This means that if one partner engages in misconduct resulting in legal action, the other partners are not personally responsible for the damages or liabilities incurred. This allows each partner to be shielded from certain personal liability while still allowing for the management and operations of the business to be conducted jointly.
Learning Objectives
- Recognize the various types of business ownership and understand the legal consequences associated with each form.