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CELE SQE1 模拟练习

Examination Timing: 00H00M01S

Samantha Green is setting up a new business and is considering different organisational structures. She is particularly concerned about the potential liabilities she might face. Her friend, Alan, suggests she look into a Limited Liability Partnership (LLP) because it offers some unique advantages. 

Which of the following is a characteristic of an LLP that might appeal to Samantha?

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A Limited Liability Partnership (LLP) combines the organisational flexibility and tax status of a partnership with the limited liability of a company. This means that the partners in an LLP are not personally liable for the debts of the business beyond their investment in the partnership. This structure offers the advantage of protecting personal assets from business liabilities while allowing the business to operate with the flexibility typically associated with partnerships. 

Key Point: The LLP structure provides limited liability protection to its partners, making it an attractive option for business owners who want to combine flexibility with reduced personal risk.



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