Which of the following is a characteristic of a Limited Liability Partnership (LLP)?

A Limited Liability Partnership (LLP) is characterized by its provision of limited liability to its partners, which is a key feature that distinguishes it from general partnerships. In an LLP, partners are generally not personally liable for the debts of the partnership or the negligent acts of other partners. This limited liability protection encourages professionals—such as lawyers, accountants, and architects—to form partnerships while minimizing their personal financial risk.

The notion of limited liability means that if the LLP faces financial difficulties, the partners' personal assets are typically protected, and they stand to lose only the capital that they have invested in the business. This feature enhances the appeal of the LLP structure for partnership arrangements, especially in high-risk industries.

In contrast, other options reflect characteristics that do not apply to a Limited Liability Partnership. For example, LLPs do have a legal personality, separating them from their individual partners; thus, they can own property and enter contracts in their own name. Furthermore, partners in an LLP do not carry unlimited personal liability, which is a characteristic of general partnerships, where partners are personally responsible for all debts. The structure of an LLP can remain ongoing and does not inherently have an indefinite lifespan, but rather can have a defined term if the partnership agreement specifies it. Overall