One way to eliminate some of the risk of your partners making costly mistakes that could jeopardize your personal assets is to set up a

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20-07-2022
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One way to eliminate some of the risk of your partners making costly mistakes that could jeopardize your personal assets is to set up a

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Lanuel Lanuel · Answer 1 · 2022-07-29T17:39:23+02:00

Establishing a Limited Liability Partnership (LLP) is one way to eliminate some of the risk associated with business partners making costly mistakes that could jeopardize one's personal assets.

What is risk management?

Risk management can be defined as a strategic process which involves the identification, evaluation, analysis and control of potential risks (threats) that are present in a business as an obstacle to its capital, assets, revenues and profits.

What is a LLP?

LLP is anacronym for limited liability partnership and it can be defined as a type of legal hybrid-business structure that can combine both partnership and corporation form of business, and the owners are only responsible for its debts with respect to the amount of capital they have invested.

This ultimately implies that, establishing a Limited Liability Partnership (LLP) is one way to eliminate some of the risk associated with business partners making costly mistakes that could jeopardize one's personal assets.

Read more on risk here: brainly.com/question/16352505

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