Question

Whcih of the following is true?

A. The partners are not required to file an LLP form with the state.
B. The partners maintain an adequate amount of professional liability insurance.
C. They are relatively difficult to organize around an existing partnership.
D. They necessitate that all existing partnerships be dissolved.

Answer 1

Option B

The partners maintain an adequate amount of professional liability insurance.

Step-by-step explanation:

A limited liability partnership is a partnership in which each partner is not responsible or liable for another partner's misconduct or negligence.

Similarly, A limited liability insurance is a coverage for a partner in a business. It protects his personal and private assets.

One of the features of a limited liability partnership is that he partners are allowed to maintain an adequate amount of professional liability insurance in case the business incurs a heavy loss.

This makes option B the correct answer.