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???? View Favorites Tools Help D Balser, Annarose- Outloo... (Canvas Connect New talb HW Discussion Question 13-4 (LO. 2, 3) All of the Big 4 accounting firms changed their ownership form from a general partnership to a limited liability partnership. Select Yes for the main reason for such an ownership form change and "No" for the others 04 07 . A general partnership is subject to taxation, whereas a limited liability partnership is not. Yes 8 Algo . Under the general partnership form, there is unlimited liability with the personal assets of each No of the firm partners being subject to the claims of the partnership creditors. Under a LLP, the only partners whose personal assets are at risk to pay a judgment are those actually involved in the negligence or wrongdoing at issue. The limited partnership form provides limited liability to the all partners. Their liability is limited to the amount invested plus any additional amount they agreed to invest. . Yes No

Explanation / Answer

1)The Statement is False (No)

Both entities are subject to taxation

2)The statement is True (yes)

Under general partnership ,liabilities of partners are unlimited that is in case partnership firm has insufficient asset to pay,partners will pay to creditors from their personal asset

3)The statement is yes

In case of negligence ,the limited partner can be sued for and his asset are at risk .The general partners of a limited partnership are jointly or severally liable for wrong doing of business

4)The statement is Yes

The liability of a limited partners are limited to amount invested by them.

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