Question

Which one of the following is not a feature of Limited Liability Partnership firm?

(a) Partners should be less than 20

(b) Partnership and management need not be separate

(c) Internal governance may be decided by mutual agreement among partners

(d) It is corporate body with perpetual succession

Answer 1

(a) A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liability.

LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession. Indian Partnership Act, 1932 shall not be applicable to LLPs and there shall not be any upper limit on number of partners in an LLP unlike an ordinary partnership firm where the maximum number of partners can not exceed 20, LLP Act makes a mandatory statement where one of the partner to the LLP should be an Indian.