Business Studies · Partnership vs LLP
Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R. Assertion A: A major distinction between a traditional partnership and a Limited Liability Partnership (LLP) is the level of personal risk involved for the partners. Reason R: In a traditional partnership, partners face unlimited personal liability for business debts, whereas in an LLP, the personal assets of the partners are protected. In the light of the above statements, choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A is not correct but R is correct.
- 2A is correct but R is not correct.
- 3Both A and R are correct and R is the correct explanation of A.✓
- 4Both A and R are correct but R is NOT the correct explanation of A.
Correct answer
Both A and R are correct and R is the correct explanation of A.
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