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      Question

      Under Section 4 of the Limited Liability Partnership

      (LLP) Act, 2008, what is the legal relationship between the provisions of the Indian Partnership Act, 1932, and an LLP?
      A The Indian Partnership Act, 1932, applies to LLPs unless a specific agreement states otherwise. Correct Answer Incorrect Answer
      B The provisions of the Indian Partnership Act, 1932, shall not apply to a limited liability partnership. Correct Answer Incorrect Answer
      C The Indian Partnership Act applies only to the 'Designated Partners' of the LLP. Correct Answer Incorrect Answer
      D The Central Government may, by notification, make the Indian Partnership Act applicable to LLPs. Correct Answer Incorrect Answer
      E Provisions of the Indian Partnership Act apply to LLPs only for the purpose of taxation. Correct Answer Incorrect Answer

      Solution

      Correct Answer: 2 The LLP Act, 2008, was specifically designed to provide the benefits of a corporate body (limited liability and perpetual succession) while retaining the flexibility of a partnership. To maintain this "corporate" nature, it was necessary to legally decouple it from the old partnership law.

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