Accounting Multiple Choice Question – 25 April 2020

In a limited company . . .?

Select ONE answer:

1. the liability of the shareholders is limited.
2. the liability of the company is limited.
3. the liability of both the shareholders and the company is limited.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Although the company can incur unlimited debts, which it is liable to pay. the shareholders will not become liable to pay them.
2. Not correct
3. Not correct
4. Not correct

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor View all posts by stuart001uk2014