LPC BLP PMR (100% Correct Answers)

Partnership (s1 PA 1890) correct answers the relationship which subsists between persons carrying on a business in common with a view of profit Legal status of a partnership? correct answers - no separate legal identity - partnership cannot own property or enter into contracts itself limited partnership correct answers Some partners are not liable for debts and other liabilities of partnership i.e. "limited partners" Do general Partners have unlimited liability correct answers yes what does a limited partnership require? correct answers One "limited partner" and one "general partner" at least What is a limited liability partnership (LLP) correct answers An LLP is a partnership in which the partners have limited liability meaning the partners are NOT subject to personal liability for all the debts and obligations of the partnership. What legislation are LLPs governed by? correct answers - Partnership Act 2000 - Any other relevant legislation - Common law what is a company limited by shares? correct answers Akin to an LLP as partners have SLI to liabilities What is a company limited by guarantee? correct answers Members "guarantee" a certain contribution upon financial difficulty (commonly £1). What is a joint venture? correct answers - A collaborative, commercial arrangement entered into by two or more parties to pursue a common business goal. - No limited liability however Features of a contractual JV? correct answers - Not governed by Partnership Act - Parties enter into contract "co-operation agreement" which sets out obligations and shares of costs/resources. What are shareholders? correct answers individuals or other businesses that have invested their money to provide capital for a company in return for a share. Membership begins when members names are entered into the company register, under what section of the CA? correct answers s112(2) CA What is par value? correct answers An assigned monetary value given to each share of stock. It is the minimum subscription price for said share in the company.