The Limited Liability Partnership (LLP) Act 2008 provides entrepreneurs and professionals with the benefits of limited liability while allowing flexibility in internal structure. What is the primary purpose of LLP?

To offer tax benefits to large corporations.

To provide unlimited liability to partners.

To create a business vehicle with perpetual succession.

To replace traditional partnership structures completely.

Which statement accurately distinguishes an LLP from a partnership firm?

An LLP can have an unlimited number of partners.

Partners in an LLP have unlimited liability.

The death of a partner does not affect the existence of an LLP.

The property of an LLP belongs to individual partners.

In an LLP, the liability of partners is limited to:

Their agreed contribution in the LLP.

What is a significant difference between an LLP and a company?

LLPs have a more complex management structure.

Companies have limited liability, while LLPs have unlimited liability.

Companies have perpetual succession, while LLPs do not.

LLPs allow partners to participate in management without losing limited liability.

Which document is required for the incorporation of a limited liability partnership?

Limited Liability Partnership Agreement

In which circumstance is audit not compulsory for an LLP?

When the capital contributed is less than ?25 lakh.

When the turnover is less than ?40 lakhs.

When the LLP has more than 20 partners.

When the LLP engages in borrowing activities.

What is the primary purpose of having a registered office for an LLP?

To conduct business transactions.

To communicate with the Registrar.

To provide a space for partner meetings.

Which individuals can sign the incorporation document of an LLP?

Any individual associated with the LLP.

Company Secretary or Advocate only.

What is the consequence of making a false statement in the incorporation process of an LLP?

Imprisonment for up to one year.

Imprisonment for up to two years and a fine of at least ?10,000.

What is the conclusive evidence provided by the certificate of incorporation of an LLP?

The capital contributed by partners.

The LLP's profit and loss statement.

The LLP's compliance with tax regulations.

The LLP's incorporation under its specified name.

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