Answer to Question #216194 in Economics for qianhe

Question

Limited liabilities partnership (LLP) was first introduced in Malaysia in 2012 through the introduction of Limited Liabilities Partnership Act 2012. Since then, LLP has been on of the popular which business entity among business owners used for the running of business operations due to the benefits and flexibility that LLPs have. 

a) Explain TWO (2) difference between Limited liabilities partnership and a conventional corporation in terms of statutory compliance requirement.  

Answer 1

Limited liabilities partnership (LLP) provides the flexibility of controlling the business operation in accordance with the partnership agreement, whilst enjoying the limited liability status compared to a company which is subject to strict compliance requirements under the Companies Act 1965 in most of its affairs.

LLP offers limited liability to its partners whereby any debts and obligations of the LLP will be borne by the assets of the LLP while for conventional partnership, the partners are jointly and severally liable with the firm.