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

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Ellsworth

28 days 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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Aracelis

9 days ago

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

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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!

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Artie

21 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.

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Artie

22 days ago

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

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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.

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Cristen

2 months ago

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

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Cassandra

2 months ago

I disagree, I believe the incorrect statement is A.

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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.

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Dorthy

16 days ago

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

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Brianne

24 days 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

29 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.

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