What is a 'limited liability partnership' (LLP)?

A limited liability partnership (LLP) is a type of partnership that allows all partners to have limited liability, meaning they are not personally responsible for the debts and obligations of the partnership beyond their investment in it. This structure protects each partner's personal assets from business liabilities and misconduct of other partners, which is a significant advantage over general partnerships where partners may be personally liable for the partnership's debts and obligations.

The features of an LLP align with the nature of option A because it accurately captures the essence of what an LLP is designed for: providing a level of security to all partners involved. Each partner has the benefit of limited personal liability, fostering an environment where individuals can collaborate on a business venture while mitigating personal financial risk.

In contrast, the other options do not characterize an LLP correctly or comprehensively. For example, saying a partnership has unlimited liability for all partners does not apply to an LLP, and defining it as one formed only for specific professional practices overlooks the broader applicability of LLPs in various industries. Additionally, the requirement of a written agreement is generally a feature of many partnership types, and while it is advisable for an LLP, it is not a defining characteristic of what constitutes an LLP itself.