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Question 40 of ACCA speciment exam

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Question 40 of ACCA speciment exam

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarMikeLittle.
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  • November 29, 2017 at 4:14 pm #418918
    Avatarlg88
    Member
    • Topics: 2
    • Replies: 10
    • ☆

    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

    November 29, 2017 at 5:59 pm #418951
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    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?

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