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

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.

Suggested Answer: A

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30 comments · newest first

Carlene 11 months ago

Not sure about that annual return thing, sounds off.

Frederica 11 months ago

I think designated members are a must for LLPs, right?

Quentin 11 months ago

Wait, do they really have to submit annual returns?

Horace 12 months ago

Totally agree, that’s a key feature!

Cassie 12 months ago

LLPs are indeed separate legal entities.

Esteban 1 year ago

I remember discussing how outsiders contract with the LLP itself, so option B seems right to me, but I could be mistaken.

Thaddeus 1 year ago

I think option D is correct because I recall that LLPs have to file annual returns, but I’m not 100% confident about the specifics.

Eugene 1 year ago

I’m not entirely sure, but I feel like the part about designated members in option C might be tricky. It sounds similar to what we studied about company directors.

Novella 1 year ago

I remember that LLPs are separate legal entities, just like companies, so I think option A is correct.

Tyra 1 year ago

I've got a good understanding of LLPs, so I think I can tackle this. The key is to focus on the differences between an LLP and a company. I'll eliminate the options that are correct and then choose the one that's incorrect.

Frederick 1 year ago

Hmm, this is a tricky one. I'm not entirely sure about the differences between an LLP and a company. I'll need to review my notes on the key characteristics of an LLP to make sure I get this right.

Cecil 1 year ago

I'm pretty confident about this one. I think the answer is C - an LLP must have "designated members" which are the LLP equivalent of the board of directors of a private company.

Maurine 1 year ago

Okay, let me think this through. I know an LLP is a separate legal entity, and the partners have limited liability, just like in a company. But I'm not sure about the designated members part. I'll have to carefully consider each option to determine which one is incorrect.

Ellsworth 1 year 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!

Kanisha 1 year ago

↳ replying to Ellsworth

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

Margurite 1 year ago

↳ replying to Ellsworth

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.

Aracelis 1 year ago

↳ replying to Ellsworth

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

Walton 2 years ago

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

Artie 1 year ago

↳ replying to Walton

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.

Artie 1 year ago

↳ replying to Walton

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

Marica 2 years 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.

Cristen 2 years ago

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

Cassandra 2 years ago

I disagree, I believe the incorrect statement is A.

Sharika 2 years ago

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

Dorthy 1 year ago

↳ replying to Sharika

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

Brianne 1 year ago

↳ replying to Sharika

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

Roselle 1 year ago

↳ replying to Sharika

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.

Gilma 1 year ago

↳ replying to Sharika

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

Lashonda 2 years ago

Answer B is incorrect. Outsiders do contract with the LLP, but the partners are still liable for the LLP's debts and obligations.

Cristen 2 years ago

I think the incorrect statement is D.

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