Question

When a limited liability company is formed, a.all partners have limited liability b.some of the partners have limited liability c.the partnership activities are limited d.None of the partners has limited liability

Answer 1

Answer:

The correct answer is letter "A": all partners have limited liability.

Explanation:

A Limited Liability Company (LLC) is a type of organization where the members of the organization are not personally liable for the responsibilities of the company. It means if the firm falls into debt, the personal assets of the members will not be considered in paying the debt.