The partners of an LLP are not personally liable for the:a.Debts and obligations of the LLPb.Wrongful acts or omissions of other partnersc.Fraudulent activities of the LLPd.Losses incurred by the LLP

In an LLP, the liability of partners is:a.Limited to their capital contributionb.Limited to their share of profitsc.Unlimited and jointd.Unlimited but several

The liability of the partners for any contract is usually:Group of answer choicesa joint and several liabilityjoint liabilitynil. Partners are not liable for contracts that they did not sign as there is no agency relationship between the partnersdependent on the circumstances. Partners will only be liable to outsiders if the partner who signed the contract had actual authority to do so

Which of the following is correct regarding a limited liability partnership (LLP)?Multiple choice question.Each partner in an LLP is responsible for his or her own negligence and the negligence of those that he or she supervises.Each partner in an LLP pays taxes on the total income of the business.An LLP consists of a general partner and a limited partner who plays no role in the management of the business.An LLP is considered a separate legal entity in most states.

In which of the following circumstances will the rest of the partners NOT be liable for the conduct of a partner?Group of answer choicesA partner enters into a contract on behalf of the partnership, which is not expressly required by the partnership agreement, yet is within the scope of the firm’s normal businessAn outsider entered into a series of agreements with a partner in the name of the partnership. The other partners have no knowledge of this partner’s actions and the partner did not have the authority to enter into the agreements. However, the type of agreements entered into could be considered by an outsider to be of a type that such a firm would legitimately have enteredWhile acting within the scope of his/her apparent authority, a partner advises a client of the partnership to invest in a company which the partner knows is a mere shell company. This shell company has no shares, has no bank account and does not engage in business. The client followed the advice of the partner and invested as instructed. The client loses all of his money when the same partner takes the money and goes into hiding. The client seeks compensation in tort from the remaining partnersA partner, who is also a trustee of the firm, improperly employs trust property on account of the partnership without the knowledge of the other partners

What is the punishment for designated partners who contravene the requirements or regulations of the LLP Partnership Act?a.Imprisonment for up to six monthsb.A fine of Rs. 50,000/-c.Both imprisonment and a fined.No punishment specified