Question 29
Business OrganisationsIn the event of liquidation of a private limited liability company, the shareholders' liability is limited in their total
- A.income from all sources
- B.family assets
- C.collateral offered for bank loans
- D.investment in the company
Show the answer and explanation
Answer: D (investment in the company)
Explanation
With limited liability a shareholder can lose only the amount he has put into the company's shares.