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JAMB Commerce 2000 Question 8

Question 8

Business Units

On liquidation of a public limited liability company, the residual owners are the

  1. A.creditors
  2. B.ordinary shareholders
  3. C.preference shareholders
  4. D.debenture holders.
Show the answer and explanation

Answer: B (ordinary shareholders)

Explanation

Ordinary shareholders get whatever is left after all others are paid, so they are the residual owners.