JAMB Commerce 1998 Question 9

Question 9

Business Finance

A source of capital to private limited companies is shares issued to

  1. A.the public
  2. B.selected persons
  3. C.members of the Board of Directors
  4. D.dedicated members of staff.
Show the answer and explanation

Answer: B (selected persons)

Explanation

A private company may not invite the public; it sells shares privately to selected persons.