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JAMB Commerce 1994 Question 5

Question 5

Business Units

A distinguishing characteristic of a limited liability company is that it

  1. A.is a collection of many sole proprietors
  2. B.is a multiple partnership
  3. C.can sue and be sued
  4. D.has limited resources.
Show the answer and explanation

Answer: C (can sue and be sued)

Explanation

A limited company is a separate legal person, so it can sue and be sued in its own name.