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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Question 40 of ACCA speciment exam
Hi,
I’m a bit confused by question 40 from the free specimen exam (on the ACCA website and kaplan exam kit):
“Which TWO statements are correct in relation to designated members in limited liability partnerships (LLPs)?
-They have limited liability
-They must not take part in the day-to-day operation of the business
-They are responsible for filing the LLP’s accounts
-They are fully liable for partnership debts”
I thought the answer would be limited liability and they are responsible for filing the LLP accounts.
But it’s stating the correct answer is that they are fully liable for partnership debts. I thought LLP members had liability limited to their capital contribution?
Thanks
Leah
The designated members are those members that are designated as having unlimited liability
The reason is that there has to be at least one member with unlimited liability and that’s the one known as the designated member
OK?