Hi Mike, I got the following question from BBP Revision Kit, can you help me, please?
Which of the following statements regarding Limited Liability Partnerships is correct?
A A written partnership agreement is required to form the partnership
B The partnership dissolves when a partner leaves
C The partnership must have two designated members who are responsible for the publicity requirements of the partnership.
D The partnership is exempt from audit
Answer: C
My Questions:
Option A - I just read that a formal agreement is required for this business type (Limited liability partnerships). Formal agreement is not a written agreement?
Option B - I thought the partnership finishes when a partner leaves. Or would this only be for a general partnership? Notice by a partner means a note finishing the partnership?
Option C - I am not sure what does it mean by publicity requirements of the partnership.
Just one more question to finish Partnerships :)
The notes says it can not be made for just one transaction, but I read somewhere else it could, can you just make it clear for me, please?
I hope my questions are not too messy. Thank you in advance.
Ask the Tutor ACCA LW
Partnership
11y ago#1Hi Barbara
I'm going to pass this post over to the Internet!
Try this link - I believe it answers most of your points (and maybe increases BPP's understanding of LLPs!)
Www.com/articles/investing/090214/limited-liability-partnership-lop-basics.asp
Ok - if not, post again
11y ago#2Sorry!
Www.investopedia.com/articles/investing/090214/limited-liability-partnership-lap-basics.asp
Try that!
11y ago#3At the end it's llp not lap
Predictive texting!
Hi Mike,
I was actually reading an article from Investopedia before writing my question here, but was different article showing the differences between them.
"The LLP is a formal structure that requires a written partnership agreement" which means option A in the question is correct as well?!
11y ago#5I read two or three of those articles and only having read a substantial part of one of them did I realize that it referred to American llps
Just check the article again and make sure that it's not targeted at USA llps
Hi Mike,
I have an exam tmw and I still think the option A in the question is correct.
11y ago#7I think I'm agreeing with you.
Answer b) is incorrect
Answer c) is "one designated member" and
Answer d) is, again, incorrect
So, it's a)
Good luck tomorrow - I've already got fingers crossed
Thank you Mike!
I apologise in advance for crashing into this thread and hesitate to cause further confusion but I believe the answer may be C.The following link provides details of why I believe this might be the right answer.
https://www.companylawclub.co.uk/topics/limited_liability_partnerships_llps.shtml
I think its a bit of a trick question because any people with the know-how to seek to form a limited liability partnership would presumably have the sense to have a written agreement even if not required by statute.In practice I would imagine almost every llp has written partnership agreement.
11y ago#11Jon, thank you for this link - and you have made me reconsider my response to Barbara. Within that link it clearly states that there must be 2 designated members so my original Barbara response is incorrect.
Let's just hope that the question is not in Barbara's exam on Saturday!
Which of the following statements about limited liability partnerships is true?
-A written partnership agreement must be registered with the Registrar of Companies
-At least one general partner must be appointed with unlimited liability for the debts of the firm
-A limited liability partnership is a corporate body which has a separate legal personality from its members
The last one is the correct answer.
Just came across this question from the online practice test and mark the first one as correct but it was wrong. Will definitely not get it wrong in the exam ;)
11y ago#13You're rapidly becoming the World authority on limited liability partnerships! Goo luck today
Dear Mike,
Referring to the last LLT Company that Barbara posted, why the first option is not correct?
I double checked in the link provided by Mrjonbain and it says:
"A Limited Liability Partnership (LLP) is a separate legal entity conferring full limited liability on its members. It is created by registration at Companies House"
Thanks
Gabbi
11y ago#15I don't think that a "written partnership agreement" is the same as "registration at Companies House"
Its definitely wrong the option about written partnership and it came up on my exam but I'm sure I got the question right :)
I passed my exam! 71%! Whew!
Thanks Mike!!!!!
11y ago#17Good score, well done Barbara. Onwards and upwards. :-)
Well done on passing your exam.Just to confirm that, as Mike indicates, there is a difference between the subscription to the incorporation of the LLP which is required by the associated Act of parliament and a written partnership agreement which is not required by the Act.
11y ago#19Thanks Jon :-)
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