__________________ is/are not true with regard to Limited liability p…

The correct answer is Option (2) → (C) and (E) Only

A Limited Liability Partnership (LLP) is a body corporate formed under the Limited Liability Partnership Act, 2008. It combines the flexibility of a partnership with the limited liability of a company.

(A) Separate Legal entity — True. An LLP is a legal person separate from its partners; it can own property and sue in its own name.

(B) Limited liability of partners — True. Each partner’s liability is limited to the contribution agreed in the LLP agreement.

(C) Indian Partnership Act, 1932 is applicable — False. An LLP is governed by the LLP Act, 2008; the Indian Partnership Act, 1932 does not apply to it.

(D) Perpetual Succession — True. The LLP continues to exist even when partners join, retire or die.

(E) Unlimited liability of partners — False. Unlimited liability is a feature of an ordinary partnership firm, not of an LLP.

So the statements that are not true are (C) and (E).

Note 1: It seems that there is a mistake in the original NTA question. Statement (B) was printed as “Unlimited liability for one partner”, which is also not true of an LLP, because no partner of an LLP has unlimited liability; the not-true statements were then (B), (C) and (E), and no option gave that set. For the benefit of students and to ensure that the question is correct and has a single valid answer, statement (B) has been changed to “Limited liability of partners”.

Note 2: This topic is not covered in any edition of the NCERT Accountancy textbook.