Types of Business Organisation Flashcards
1
Q
What does LLP stand for?
A
Limited liability partnership
2
Q
If a partner doesn’t take part in the running of the business, but is liable for debts in the partnership, what type of partner is this?
A
Sleeping partner
3
Q
If a partner cannot take part in the management of the firm, what type of partner is this?
A
Limited partner
4
Q
Is an LLP legally separate from it’s members?
A
Yes
5
Q
Does a partnership agreement have to be in writing?
A
No
6
Q
How many partners in an LLP must have unlimited liability?
A
1
7
Q
Does a limited partner have the power to bind the firm to contracts?
A
No
8
Q
Is a retiring partner liable for debts incurred whilst they were a partner?
A
Yes
