Chapter 2: Limited Liability Partnerships and Limited Partnership

Question 1

The two categories of enterprises for which a limited liability partnership (LLP) is especially attractive are:

Answer 1

professional services and family businesses.

Question 2

LLPs must be formed and operated in compliance with federal law.

Answer 2

False

Question 3

What is the major advantage of an LLP?

Answer 3

It limits the personal liability of partners to only their own wrongful acts.

Question 4

The family limited liability partnership (FLLP), is most often used in

Answer 4

Agriculture

Question 5

In order to form a valid limited partnership (LP), the partnership must:

Answer 5

File a certificate of limted partnerhsips

Question 6

Generally speaking, a limited partnership will be dissolved if

Answer 6

A general partner goes bankrupt

Question 7

The formation of both a traditional partnership and a limited partnership requires a public and formal proceeding that must follow statutory requirements

Answer 7

False

Question 8

In a limited partnership, the liability of a limited partner is:

Answer 8

limited to the capital contirbution

Question 9

What happens if a limited partner in a limited partnership participates in management?

Answer 9

The limited partner becomes just as liable as a general partner to any creditor