Which of the following statements is true regarding the governance of an LLP?a.It must have a designated managing partnerb.All partners have equal decision-making authorityc.External directors are mandatory in an LLPd.The government appoints a board of directors
Question
Which of the following statements is true regarding the governance of an LLP?a.It must have a designated managing partnerb.All partners have equal decision-making authorityc.External directors are mandatory in an LLPd.The government appoints a board of directors
Solution
The statement that is true regarding the governance of a Limited Liability Partnership (LLP) is: a. It must have a designated managing partner.
In an LLP, at least one partner must be designated as the managing partner who is responsible for the day-to-day operations and management of the LLP. The other partners may have equal decision-making authority, but this is not a requirement. External directors are not mandatory in an LLP, and the government does not appoint a board of directors for an LLP. The partners of the LLP have the freedom to manage the LLP as they see fit, within the bounds of the LLP agreement and the law.
Similar Questions
The Limited Liability Partnership Act, 2008 of India regulates the formation and dissolution of LLPs. This statement is ______.a.TRUEb.FALSEc.Partially Trued.Incomplete
Which of the following is NOT required to be included in the articles of incorporation for a limited liability partnership?a.The name and address of each memberb.The date when the LLP was formedc.The type of business or profession conducted by the LLPd.The name and address of each general partner
Company SecretaryWhich of the following are true regarding a company secretary? (More than one option can be correct.)The company secretary guides the board in legal mattersThe company secretary ensures that the company’s actions are within the permissions of the lawThe company secretary is not mandatory for businessesThe company secretary maintains and files all required legal documentation
Which of the following statements are true in the context of large corporations? More than one answer may be correct.Multiple select question.The shareholders elect the managers, which then select the board of directorsLarge corporations employ managers to represent the owners’ interests and make decisions on their behalf.The shareholders elect the board of directors.The owners of large corporations are usually directly involved in making day-to-day business decisions.
Good corporate governance involves a __________ to run businesses in a legal manner.a.planb.commitmentc.decisiond.requirement
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.