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Limited Liability Partnerships

Quiz by Paul Drury

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15 questions
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  • Q1
    Which one of the following statements about limited liability partnerships (LLPs) is NOT true?
    An LLP has a legal personality separate from that of its members.
    A limited company can convert to an LLP.
    The liability of each partner in an LLP is limited.
    Members of an LLP are taxed as partners.
    30s
  • Q2
    Ordinary limited partnerships were introduced by what act of parliament?
    Limited Partnerships Act 1907
    Companies Act 2006
    Companies Act 1985
    Limited Liability Partnerships Act 2000
    30s
  • Q3
    Consider the following two statements: 1. Members in LLP do not owe each other fiduciary duties. 2. A LLP is a hybrid of partnership and corporation. Which of the following answers is correct?
    1. False 2. True
    1. True 2. False
    1. True 2. True
    1. False 2. False
    30s
  • Q4
    Which one of these four statements about LLPs is NOT true?
    Some partners are known as designated partners.
    Members have full limited liability.
    LLP is a corporate body with separate legal identity
    The Insolvency Act 1986 and Company Directors Disqualification Act 1986 apply to LLPs
    30s
  • Q5
    Which one of these four statements about LLPs is NOT true?
    A LLP needs to be formed using for LLIN01.
    LLPs are composed of senior and ordinary partners.
    LLP has to have at least 2 members.
    A LLP exists as a separate legal entity until it is dissolved.
    30s
  • Q6
    Which one of these is NOT a default power of management in a LLP?
    The power to expel a member.
    A change in the nature of the business requires a unanimous decision.
    Ordinary business requires a majority decision.
    Members are not entitled to remuneration.
    30s
  • Q7
    Which of these statements about ordinary limited partnerships
    Must have a written partnership agreement.
    Must have £100 invested in capital.
    Must have a managing partner.
    Must have at least one general partner and one limited partner.
    30s
  • Q8
    There are many differences between a limited liability partnership (LLP) and an ordinary partnership. Which ONE of the following is not a valid difference?
    A limited liability partnership has corporate personality, whereas an ordinary partnership does not.
    Partners of an ordinary partnership cannot be disqualified, whereas partners of a limited liability partnership can be.
    Limited liability partnerships are incorporated whereas ordinary partnerships are not.
    An ordinary partnership is regulated by partnership law, whereas limited liability partnerships are never regulated by partnership law.
    30s
  • Q9
    Which one of these four statements about LLP's are not true?
    The partners of a limited liability partnership are known as 'members.'
    A limited liability partnership has corporate personality.
    Once the assets of a limited liability partnership are exhausted, its members are liable for the remaining debts and liabilities of the firm.
    A limited liability partnership is incorporated by registering an incorporation document with the Registrar of Companies.
    30s
  • Q10
    Which one of these statements about the financial arrangements in a LLP is correct?
    LLPs can issue shares.
    LLP members can share profits with the corporation.
    LLP members are only entitled to share profits and not losses.
    LLP members are entitled to share profits and losses, unless otherwise agreed.
    30s
  • Q11
    LLPs are governed by the Act and also some regulations. Which of these regulations affect LLPs?
    Limited LIability Partnerships Regulations 2001
    Limited Liability Partnerships Regulations 1976
    None of the above.
    Limited Liability Partnerships Regulations 1999
    30s
  • Q12
    "Each Member and Outgoing Member undertakes that they shall not at any time use, divulge or communicate to any person, except to their professional representatives or advisers or as may be required by law or any legal or regulatory authority, any confidential information concerning the Business or affairs of the LLP." What kind of clause is this?
    confidentiality
    30s
  • Q13
    "If any court or competent authority finds that any provision of this agreement (or part of any provision) is invalid, illegal or unenforceable, that provision or part-provision shall, to the extent required, be deemed to be deleted, and the validity and enforceability of the other provisions of this agreement shall not be affected. " What kind of clause is this?
    severance
    30s
  • Q14
    A member of a LLP does not need to be a natural person. What kind of person is this:
    corporate
    30s
  • Q15
    Unlike a company, an LLP does not have shares or shareholders, nor does it have directors. It has what instead?
    members
    30s

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