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

Which ONE of the following in INCORRECT in relation to a Limited Liability Partnership (''LLP'')?
A) An LLP, like a company limited by shares, is a separate legal entity.
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.
C) An LLP must have ''designated members'' which are the LLP equivalent of the board of directors of a private company.
D) In return for Limited liability, an LLP, like a company, is required to submit an annual return.

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

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam
Question #: 101
Topic #: 9
[All CIMAPRA17-BA4-1 Questions]

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

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Suggested Answer: A

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

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Carlene
8 months ago
Not sure about that annual return thing, sounds off.
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Frederica
8 months ago
I think designated members are a must for LLPs, right?
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Quentin
8 months ago
Wait, do they really have to submit annual returns?
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Horace
8 months ago
Totally agree, that’s a key feature!
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Cassie
9 months ago
LLPs are indeed separate legal entities.
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Esteban
9 months ago
I remember discussing how outsiders contract with the LLP itself, so option B seems right to me, but I could be mistaken.
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Thaddeus
9 months 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.
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Eugene
9 months 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.
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Novella
9 months ago
I remember that LLPs are separate legal entities, just like companies, so I think option A is correct.
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Tyra
9 months 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.
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Frederick
9 months 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.
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Cecil
9 months 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.
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Maurine
10 months 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.
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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!
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Kanisha
1 year ago
C) An LLP must have ''designated members'' which are the LLP equivalent of the board of directors of a private company.
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Margurite
1 year 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.
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Aracelis
1 year ago
A) An LLP, like a company limited by shares, is a separate legal entity.
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Walton
1 year ago
Hmm, Answer A seems off. LLPs are definitely separate legal entities, just like companies. That's the whole point of limited liability!
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Artie
1 year 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.
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Artie
1 year ago
A) An LLP, like a company limited by shares, is a separate legal entity.
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Marica
1 year 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.
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Cristen
1 year ago
But doesn't an LLP also have limited liability like a company?
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Cassandra
1 year ago
I disagree, I believe the incorrect statement is A.
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Sharika
1 year ago
I think Answer C is wrong. LLPs don't have a board of directors like a company, they have designated members instead.
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Dorthy
1 year ago
D) In return for Limited liability, an LLP, like a company, is required to submit an annual return.
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Brianne
1 year ago
C) An LLP must have ''designated members'' which are the LLP equivalent of the board of directors of a private company.
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Roselle
1 year 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.
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Gilma
1 year ago
A) An LLP, like a company limited by shares, is a separate legal entity.
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Lashonda
1 year ago
Answer B is incorrect. Outsiders do contract with the LLP, but the partners are still liable for the LLP's debts and obligations.
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Cristen
1 year ago
I think the incorrect statement is D.
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