Which form is a general partnership that filed for limited liability status?

• A. Sole proprietorship.
• B. Corporation with flexible management.
• C. General partnership that filed for limited liability status.
• D. Limited partnership with passive investors.

Answer: (C)

An LLP, or Limited Liability Partnership, is a general partnership that has filed to obtain limited liability protection. In this form, all partners typically remain involved in management like a general partnership, but the filing provides liability protection so partners aren’t personally liable for the partnership’s debts or for the actions of other partners. This preserves the partnership structure and pass-through taxation while adding a shield against personal liability.

The other options don’t fit. A sole proprietorship involves no partners and no liability shield. A corporation with flexible management is a separate entity designed as a corporation, not a partnership. A limited partnership has both general and limited partners; the general partner has unlimited liability and runs the business, while limited partners are typically passive investors, so it’s not a general partnership that has filed for liability status.