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Which of the following statements are TRUE of limited liability companies?
(1)The company’s exposure to debts and liability is limited.
(2)Financial statements must be produced.
(3)A company continues to exist regardless of the identity of its owners.A 1 and 2 only
B 1 and 3 only
C 2 and 3 only
D 1, 2 and 3.I guess the answer will be option C.am i right?
another question is in case of partnership business……..partners and business are legally the same entity.
But in case of limited liability partnership…….partner’s liability is limited and they will not be liable personally to pay the business debt. So in case of LLP is it that partners and business are separate legal entity?
First question:
Yes – the correct answer is C.
(But why are you attempting questions for which you do not have an answer – you should be using a Revision Kit from one of the ACCA approved publishers. They contain exam standard questions, together with answers and explanations).
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