
In a limited company . . .?
Select ONE answer:
- the liability of the shareholders is limited.
- the liability of the company is limited.
- the liability of both the shareholders and the company is limited.
- None of the above.
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 1
- Correct – Although the company can incur unlimited debts, which it is liable to pay. the shareholders will not become liable to pay them.
- Not correct
- Not correct
- Not correct
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