In an LLP, which statement about liability is true?

• A. The acts of every other partner
• B. The acts and debts of the partnership
• C. Their own personal debts only
• D. The acts of the partners' families

Answer: (B)

In an LLP, liability is tied to the partnership as an entity. The partnership bears responsibility for its own acts and debts, while individual partners are not personally liable for the partnership’s obligations or for the acts of other partners. This is why the statement describing the partnership as responsible for its own acts and debts is the correct interpretation. Partners can still be personally liable for their own actions or any personal debts they incur or guarantees they sign, but not for the partnership’s debts simply because they are partners. The option about family members’ actions isn’t relevant to how LLP liability works.