What key feature distinguishes a Limited Liability Partnership (LLP) from a traditional partnership?

LLPs protect personal assets from debts.

• Limited liability is key benefit.

• Partners' assets are shielded.

• Traditional partnerships lack this.

Fill in the blank: The Limited Liability Partnership Act, 2008, was enacted to provide a legal framework for ___ in India.

Limited liability partnerships

True or False: In an LLP, partners are jointly and severally liable for the actions of each other.

False. In an LLP, partners are not liable for the wrongful acts of other partners.

What is the maximum number of partners allowed in an LLP under the Companies Act, 2013?

Up to 100 partners.

What is one major disadvantage of forming a Limited Liability Partnership?

LLPs face heavy penalties for non-compliance with regulatory requirements, which can hinder their growth.

Riddle: I have a flexible structure and protect my partners from debts, but I am not a corporation. What am I?

A Limited Liability Partnership (LLP).

Fill in the blank: The liability of a partner in an LLP is limited to their ___ in the partnership.

Contribution

What role do designated partners play in a Limited Liability Partnership?

Designated partners are responsible for compliance with the LLP Act and ensure the LLP meets regulatory requirements.

True or False: An LLP can be formed with just one partner.

False. An LLP must have at least two partners.

What does perpetual succession mean in the context of an LLP?

Perpetual succession means that the LLP continues to exist even if a partner dies, retires, or becomes insolvent.

MCQ: Which of the following is NOT a characteristic of an LLP? A) Limited liability B) Separate legal identity C) Unlimited liability D) Flexibility in management

C) Unlimited liability

Fill in the blank: The LLP Act allows for the conversion of a ___ company into an LLP if there are no security interests in its assets.

Private

What is a significant advantage of an LLP over a traditional partnership?

An LLP has a distinct legal identity, allowing it to own property and sue or be sued in its own name.

Riddle: I can be transformed from a partnership or private company, but I cannot revert back. What am I?

A Limited Liability Partnership (LLP).

What are the main advantages of a Limited Liability Partnership (LLP) compared to traditional partnerships?

False

LLP offers unique business advantages.

• Limited partner liability protection.

• Fewer compliance requirements overall.

• Flexible management structure allowed.