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GCE Commerce 1990 Question 44

Question 44

Business Units

The word Ltd written after the name of a company means that

  1. A.the individual member's capital is limited
  2. B.the total sum of the company's capital is limited
  3. C.members are liable to the extent of their holding
  4. D.company's location is limited
  5. E.a shareholder has only one vote.
Show the answer and explanation

Answer: C (members are liable to the extent of their holding)

Explanation

Limited liability means a shareholder can lose only the amount he invested in shares.