CIMA Exam CIMAPRA17-BA4-1 Topic 9 Question 101 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 101
Topic #: 9

Which ONE of the following in INCORRECT in relation to a Limited Liability Partnership (''LLP'')?

AAn LLP, like a company limited by shares, is a separate legal entity.

BOutsiders contract with the LLP and not with the partners, just as outsiders would contract with the company and not the directors or shareholders of the company.

CAn LLP must have ''designated members'' which are the LLP equivalent of the board of directors of a private company.

DIn return for Limited liability, an LLP, like a company, is required to submit an annual return.

Show Suggested Answer

Suggested Answer: A

by Cristy at Sep 18, 2024, 09:25 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA4-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ellsworth

2 months ago

Wait, so an LLP is like a company, but with less paperwork? Sign me up, I've got a brilliant business idea involving glitter and puppies!

upvoted 0 times

Kanisha

8 days ago

C) An LLP must have ''designated members'' which are the LLP equivalent of the board of directors of a private company.

upvoted 0 times

...

Margurite

17 days ago

B) Outsiders contract with the LLP and not with the partners, just as outsiders would contract with the company and not the directors or shareholders of the company.

upvoted 0 times

...

Aracelis

28 days ago

A) An LLP, like a company limited by shares, is a separate legal entity.

upvoted 0 times

...

Walton

2 months ago

Hmm, Answer A seems off. LLPs are definitely separate legal entities, just like companies. That's the whole point of limited liability!

upvoted 0 times

Artie

1 months ago

B) Outsiders contract with the LLP and not with the partners, just as outsiders would contract with the company and not the directors or shareholders of the company.

upvoted 0 times

...

Artie

1 months ago

A) An LLP, like a company limited by shares, is a separate legal entity.

upvoted 0 times

...

Marica

2 months ago

Ooh, this is a tricky one. I'd say Answer D is incorrect - an LLP doesn't have to submit an annual return like a company, that's just for the big boys.

upvoted 0 times

...

Cristen

2 months ago

But doesn't an LLP also have limited liability like a company?

upvoted 0 times

...

Cassandra

2 months ago

I disagree, I believe the incorrect statement is A.

upvoted 0 times

...

Sharika

2 months ago

I think Answer C is wrong. LLPs don't have a board of directors like a company, they have designated members instead.

upvoted 0 times

Dorthy

1 months ago

D) In return for Limited liability, an LLP, like a company, is required to submit an annual return.

upvoted 0 times

...

Brianne

1 months ago

C) An LLP must have ''designated members'' which are the LLP equivalent of the board of directors of a private company.

upvoted 0 times

...

Roselle

2 months ago

B) Outsiders contract with the LLP and not with the partners, just as outsiders would contract with the company and not the directors or shareholders of the company.

upvoted 0 times

...