A Limited Liability Partnership is a form of business that offers the benefits of both a partnership and a company. It has a legal status and its partners have liability only to the extent of capital they have invested in the firm. Below is a list of multiple-choice questions and answers on Limited Liability Partnership to help students grasp the main concepts related to this topic. Answer: d Answer: a
- A Limited Liability Partnership must file its annual return within 30 days from the closing of its financial year
- A Limited Liability Partnership must file its annual return within 45 days from the closing of its financial year
- A Limited Liability Partnership must file its annual return within 15 days from the closing of its financial year
- A Limited Liability Partnership must file its annual return within 60 days from the close of its financial year
Answer: a
- Particulars of the receipts and expenditures at the Limited Liability Partnership with the details of those transactions
- An inventory of the cost of goods purchased, work in progress, inventories, finished goods as well as the cost of goods sold
- A complete record of the assets and liabilities of the Limited Liability Partnership
- All of the above
Answer: d
- A Limited Liability Partnership should maintain its accounts at the branch office
- A Limited Liability Partnership should maintain its accounts at the corporate office
- A Limited Liability Partnership should maintain its accounts at the head office
- A Limited Liability Partnership should maintain its accounts at the registered office
Answer: d
- A Limited Liability Partnership should maintain its books of accounts on the accrual basis
- A Limited Liability Partnership should maintain its books of accounts on the cash basis
- A Limited Liability Partnership should maintain its books of accounts based on the double-entry system of accounting
- All of the above
Answer: d
- It should be signed by the designated partners authorised on behalf of the Limited Liability Partnership
- It should be signed by one partner authorised on behalf of the Limited Liability Partnership
- It should be signed by all partners of the Limited Liability Partnership
- It should be signed by at least two partners authorised on behalf of the Limited Liability Partnership
Answer: a
- The Limited Liability Partnership should file its statement of account and solvency with the registrar of firms
- The Limited Liability Partnership should file its statement of account and solvency with the registrar
- The Limited Liability Partnership should file its statement of account and solvency with the registrar of cooperative societies
- None of the above
Answer: b
- The books of accounts for a Limited Liability Partnership must be preserved for four years
- The books of accounts for a Limited Liability Partnership must be preserved for two years
- The books of accounts for a Limited Liability Partnership must be preserved for eight years
- The books of accounts for a Limited Liability Partnership must be preserved for six years
Answer: c
- The registrar may fix the auditor’s remuneration
- The designated partners in a Limited Liability Partnership may fix the auditor’s remuneration
- The auditor’s remuneration gets decided as per the procedure laid down in a Limited Liability Partnership agreement
- Both b and c are correct
Answer: d
- The registrar can remove the auditor
- The partners can remove the auditor following the guidelines present in the Limited Liability Partnership agreement
- If the Limited Liability Partnership agreement has no provision for removing the auditor, the consent of all partners is necessary to relieve the auditor from their duties
- Both b and c are correct
Answer: d
- The other partners in the Limited Liability Partnership can appoint an auditor
- The registrar of the cooperative societies can appoint an auditor
- The registrar of firms can appoint an auditor
- The registrar can appoint an auditor
Answer: a
- An auditor in a Limited Liability Partnership shall continue to hold office as per the terms of their appointment till they are re-appointed
- An auditor in a Limited Liability Partnership shall continue to hold office as per the terms of their appointment for one financial year
- An auditor in a Limited Liability Partnership shall continue to hold office as per the terms of their appointment till the new auditors are appointed
- Both a and c are correct
Answer: d
- Within four months from the end of the financial year
- Within six months from the end of the financial year
- Within three months from the end of the financial year
- Within two months from the end of the financial year
Answer: b
- 21st March 2009
- 23rd March 2009
- 31st March 2009
- 30th March 2009
Answer: c
Also See:
- Difference between LLP and Partnership
- Partnership Deed
- What is a Partnership Agreement?