Question

The advantage of a limited partnership business structure as opposed to a corporate business structure is:

A. flow-through of gain and loss
B. centralized management
C. lower risk of audit
D. limited liability

Answer 1

Answer:

D. limited liability

Explanation:

In a limited liability partnership, each partner's risk of losing personal assets is limited to the share capital he has invested. The limited liability partner is not liable for other partners deeds and losses incurred due to their negligence. His liability is limited to the share capital / equity he has invested in the business.