Asked by Robin Sutphen on May 05, 2024
Verified
A________ is a form of business organization that normally allows lawyers doing business as partners to avoid personal liability for the malpractice of other partners.
A) partnership
B) professional corporation
C) limited liability partnership
D) limited partnership
Limited Liability Partnership
A partnership where some or all partners have limited liabilities, protecting each partner's personal assets from the debts and liabilities of the business.
Malpractice
Professional misconduct or negligence—the failure to exercise due care—on the part of a professional, such as an attorney or a physician.
Professional Corporation
A professional corporation is a business entity composed of specific types of professionals, such as lawyers, doctors, or accountants, governed by special laws and typically offers its members certain legal protections.
- Identify the types of legal entities and their characteristics in the context of law firms.
Verified Answer
AH
Allie HarrisMay 07, 2024
Final Answer :
C
Explanation :
A limited liability partnership (LLP) allows professionals, such as lawyers, to avoid personal liability for the malpractice of other partners. This structure is specifically designed to offer some protection to partners in a partnership, distinguishing it from other forms of business organizations where such protections might not be as strong or explicitly defined.
Learning Objectives
- Identify the types of legal entities and their characteristics in the context of law firms.