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Question 13: A limited liability partnership must:
A. File registration documents with the state in which it is formed.
B. Hold all partners personally liable for all debts and liabilities of the partnership and partners.
C. Carry no less than one hundred thousand dollars of property insurance.
D. Not have partners with professional licenses.
Correct Answer: A
Explanation:
Choice "a" is correct. Rule: To have limited liability, an LLP must file with the state a registration
statement
usually referred to as Articles of LLP. It is generally designed for professionals who desire to be
partners
with other like professionals and yet not have liability for the malpractice of their partners. Some
states
require that personal liability insurance (not property insurance) be carried to protect those harmed
by the
professionals' malpractice. Choices "b", "c", and "d" are incorrect, per the above rule.
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