Which TWO of the following are characteristics of a Limited Liability Partnership (LLP)?

Answer options:

It has separate legal personality.

Members have unlimited liability for the LLP's debts.

It must file accounts with Companies House.

It cannot create floating charges over its assets.

How to approach this question

Identify the features that make an LLP a hybrid between a partnership and a company.

Full Answer

An LLP (created under the LLP Act 2000) is a body corporate with separate legal personality. This grants members limited liability, but in return, the LLP must register and file annual accounts with Companies House.

Common mistakes

Assuming LLPs are exempt from public disclosure rules like ordinary partnerships.

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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Which TWO of the following are characteristics of a Limited Liability Partnership (LLP)?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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