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JAMB Economics 1986 Question 26

Question 26

Business Organisations

Which of the following is a characteristic of private limited liability company?

  1. A.Its shares can be sold to the public.
  2. B.The number of shareholders ranges from fifty to one hundred
  3. C.All shareholders have equal powers and responsibilities
  4. D.The number of shareholders ranges from two to fifty.
Show the answer and explanation

Answer: D (The number of shareholders ranges from two to fifty.)

Explanation

Under the company law of that time, a private limited company had between two and fifty members and could not sell shares to the public.