What of the following is NOT a typical term in the contract between GPs and LPs (LPA: limited partnership agreement)? Group of answer choices a. LPA is designed to align the interests of the GP with the limited partners (LPs) using a profit-sharing agreement of private equity. b. At the exit, the LPs receive the capital that was invested in the company and the profits are split. c. The LPs typically receive 20 percent and the GPs 80 percent of the capital gain.
A limited liability partnership (LLP) is a type of partnership that combines elements of partnerships and corporations. In an LLP, each partner typically has limited liability, meaning they are not personally responsible for the debts or liabilities of the partnership or the actions of other partners, except to the extent of their own investment in the partnership. This means that if one partner engages in misconduct or negligence that results in legal or financial liability, the other partners will generally not be held liable for that partner's actions. However, partners in an LLP may still be personally liable for their own actions or omissions, as well as for any debts or obligations they personally incur outside the partnership. The specific rules governing LLPs can vary by jurisdiction, so it's important to check the relevant laws and regulations in your area.
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