PRC-3 · Chapter 2 · Question 49 of 61
Three chartered accountants decide to form a firm together. They want the flexibility of a partnership but require the firm to be a separate legal entity so that they have limited personal liability. Which structure should they adopt?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Limited Liability Partnership (LLP)
Explanation
An LLP offers the structural flexibility of a partnership while functioning as a separate corporate body, granting its partners limited liability protection.
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