Question

Which type of business ownership represents a hybrid between a partnership and corporation by allowing up to 100 shareholders without double taxation?
1) limited liability company
2)limited liability partnership
3)s-corporation
4)franchise

Answer 1

Answer:Option 2 limited liability partnership

Explanation:

Limited Liability partnership (LLP) is a hybrid between a corporation and partnership firm. LLP has more than one partner and some partners liabilities are limited as well as protected from other partner's liability. They also do not pay income taxes. The profits and deductions of the company are taken by the partners individually.

The LLP should have minimum two partners and maximum is not a limit. If there is any financial loss for the business it need not be borne by the partners.