When a limited liability company is formed a all partners ha

When a limited liability company is formed, a. all partners have limited liability b. the partnership activities are limited c. some of the partners have limited liability d. None of the partners has limited liability

Solution

The right answer is option (a) all partners have limited liability.

The concept of limited liability partnership is very much similar to company where the liability is restricted to face value of the share. That means it has limited liability. Therefore, in limited liability partnership also all partners will have limited liability to the extent of their holding. Hence, the right answer is option (a)