n NISM Certifications
X NISM Series X
Medium

In a Limited Liability Partnership (LLP) structure, the investors are partners in the firm, contributing capital but enjoying limited liability for the firm’s debts, which means their liability is restricted to their contribution amount. This structure separates personal assets from the firm’s liabilities, offering legal protection to the investors.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Partners

    Correct answer

  2. B

    Partners without liability

  3. C

    Partners in profit only

  4. D

    Creditors

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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