Explain the advantages of the LLP form of business. How does its legal structure make it a flexible and preferable business model for entrepreneurs? Also, discuss the legal capacities an LLP acquires upon registration.
Advantages of LLP form: LLP form is a form of business model which:
a) is organized and operates on the basis of an agreement
b) provides flexibility without imposing detailed legal and procedural requirements.
c) Easy to form
d) All partners enjoy limited liability
e) Flexible capital structure
f) Easy to dissolve
Effect of registration: Refer – Ans – 1)ii
Exam Strategy Tip
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