LLP quiz

What is the legal status of an LLP according to Section 3 of the LLP Act 2008?

• Unincorporated association

• Partnership firm

• Body corporate

• Sole proprietorship

Which of the following statements about perpetual succession in an LLP is true?

• It ceases to exist after the retirement of one partner.

• It continues even after the death of all partners

• It applies only to designated partners.

• It is not applicable to LLPs.

What distinguishes mutual agency in an LLP from a traditional partnership firm?

• All partners are equally liable in both cases

• Independent actions of one partner do not affect others' liability in an LLP.

• Mutual agency does not exist in an LLP.

• Partners have unlimited liability in both cases.

What is a requirement for the formation of an LLP?

• Minimum one designated partner

• Registration is voluntary

• All partners must be Indian nationals

• Minimum two partners

Who can act as partners in an LLP according to the provided information?

• Only Indian companies

• Only individuals

• Indian and foreign companies, LLPs, and certain other entities

• Only Indian nationals

What is the role of designated partners in an LLP?

• Only responsible for financial matters

• Solely responsible for all compliances

• Not liable for any contraventions

• Not required to obtain Designated Partner Identification Number (DPIN)

What is the penalty for carrying out business with fraudulent intentions in an LLP?

• What is the penalty for carrying out business with fraudulent intentions in an LLP?

• Minimum fine of Rs. 50,000

• Imprisonment up to 2 years and minimum fine of Rs. 50,000

• Imprisonment up to 2 years and maximum fine of Rs. 5,00,000

Which document sets the foundation for smooth operations in an LLP?

• Memorandum of Association

• LLP Agreement

• Partnership Deed

• Articles of Association

How many designated partners are mandatory for all LLPs?

• At least one

• At least Two

• At least three

• No designated partners required

What is not a requirement for registering an LLP in India?

• Registered business address

• Minimum capital infusion

• At least three designated partners

• Unique and valid business name