Which of the following statement is correct ?

CS CSEET · Business Laws and Management · PYQS · October 2026

(A) LLP is a separate legal entity while an ordinary partnership is not a separate legal entity

(B) Ordinary partnership is a separate legal entity while LLP is not a separate legal entity

(C) LLP is not required to maintain books of accounts while ordinary partnership is required to maintain proper books of accounts

(D) In LLP, the liability of partners is unlimited while the partners of ordinary partnership have limited liability

Answer & Explanation:

Correct Answer: Option (A)

Correct answer: (A) LLP is a separate legal entity while an ordinary partnership is not a separate legal entity.

Topics: Limited Liability Partnership Act, 2008