Answered: For Professionals, the benefit of an…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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For Professionals, the benefit of an LLC, over a partnership, is that it:

Group of answer choices

A. Keeps a professional from having any liability, the LLC holds all the liability

B. Allows professionals to purchase malpractice insurance

C. Shields the professional from professional liability of their associates and partners

D. Allows them to avoid all criminal liability

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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